Chapter 21: Understanding Migration and Remittances: Lessons from Nigeria

Remittances, or transfers between international migrants and their origin families in Sub-Saharan Africa, are an important outcome of the migration process. According to official estimates, remittances from overseas residents and nonresident workers to developing countries have grown over the past decade. In 2017, remittances inflows to developing countries reached US$466 billion and are estimated to grow to US$485 billion in 2018 (World Bank, 2018). Based on these estimates, migrants’ remittances have steadily outpaced official development assistance and may be at levels comparable to foreign direct investment in some parts of Sub-Saharan Africa (World Bank, 2018). Accounting for unrecorded flows through informal channels, the estimated size of remittances is believed to be vastly larger (World Bank, 2016). International remittances to Sub-Saharan Africa are attracting the attention of policymakers not only because of their sheer volume, but also because they tend to be less volatile than foreign direct investment and portfolio flows. Moreover, remittance flows are countercyclical in nature and may have an impact on macroeconomic stability in Sub-Saharan Africa.