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Nigeria Diaspora Remittances Decline By 27.7% To $16.8bn, World Bank Confirms
Remittances by Nigerians in the Diaspora declined by 27.7 per cent in 2020, the World Bank has confirmed.
A report by the World Bank titled, ‘Defying Predictions, Remittance Flows Remain Strong During Covid-19 Crisis’, said Nigeria contributed 40 per cent of the remittances into Sub-Saharan Africa.
It put remittances to Sub-Saharan Africa at $42billion. Forty per cent contribution of Nigeria to this means that remittances to Nigeria was $16.8billion in 2020.
A decline of 27.7 per cent also put remittances into the country in 2019 at $21.45billion.
The report said remittances to Sub-Saharan Africa declined by an estimated 12.5 per cent due to a decline in the remittances to Nigeria that contributes the largest amount in the region.
Nigeria has been having foreign exchange crisis resulting from decline in earnings from crude oil sale.
Diaspora remittances are the second major source of foreign exchange for the country.
Drying forex remittances recently pushed the Central Bank of Nigeria (CBN) to offer an incentive of N5 for every dollar remitted through official channels.
Differing exchange rates often push Nigerians in the Diaspora to explore alternative ways of remitting money into the country so that they can enjoy higher value.
The report stated that the decline in flows to Sub-Saharan Africa was almost entirely due to a 27.7 per cent decline in remittance flows to Nigeria.
Excluding flows to Nigeria, it stated, remittances to Sub-Saharan Africa increased by 2.3 per cent, demonstrating resilience.
Part of the report read, “Remittances to Sub-Saharan Africa declined by an estimated 12.5 per cent in 2020 to $42billion.
“The decline was almost entirely due to a 27.7 per cent decline in remittance flows to Nigeria, which alone accounted for over 40 per cent of remittance flows to the region.
“Excluding Nigeria, remittance flows to Sub-Saharan African increased by 2.3 per cent.
“Remittance growth was reported in Zambia (37 per cent), Mozambique (16 per cent), Kenya (nine per cent) and Ghana (five per cent).”
The report said, in 2021, remittance flows to the region were projected to rise by 2.6 per cent, supported by improving prospects for growth in high-income countries.
Data on remittance flows to Sub-Saharan Africa were sparse and of uneven quality, with some countries still using the outdated fourth IMF balance of payments manual, rather than the sixth, while several other countries did not report data at all, it stated.
The World Bank said that high-frequency phone surveys in some countries reported decreases in remittances for a large percentage of households even while recorded remittances reported by official sources report increased in flows.
The shift from informal to formal channels due to the closure of borders explained in part the increase in the volume of remittances recorded by central banks, it stated.
On the remittance costs for Sub-Saharan Africa, the report said it remained the most expensive region to send money to, where sending $200 costs an average of 8.2 per cent in the fourth quarter of 2020.
“Within the region, which experiences high intra-regional migration, it is expensive to send money from South Africa to Botswana (19.6 per cent), Zimbabwe (14 per cent), and to Malawi (16 per cent),” it stated.
The report said the relatively strong performance of remittance flows during the Covid-19 crisis had also highlighted the importance of timely availability of data.
Given its growing significance as a source of external financing for low and middle-income countries, there was a need for better collection of data on remittances in terms of frequency, timely reporting, and granularity by corridor and channel.
It stated that the lead author of the report on ‘migration and remittances’ and Head of KNOMAD, Dilip Ratha, said, “The resilience of remittance flows is remarkable. Remittances are helping to meet families’ increased need for livelihood support.
“They can no longer be treated as small change. The World Bank has been monitoring migration and remittance flows for nearly two decades, and we are working with governments and partners to produce timely data and make remittance flows even more productive.”
Despite Covid-19, remittance flows remained resilient in 2020, registering a smaller decline than previously projected.
Officially, recorded remittance flows to low and middle-income countries reached $540billion in 2020, just 1.6 per cent below the 2019 total of $548billion, according to the latest migration and development brief, the World Bank stated.
It said that in spite of Covid-19, remittance flows remained resilient in 2020, registering a smaller decline than previously projected.
“The decline in recorded remittance flows in 2020 was smaller than the one during the 2009 global financial crisis at 4.8 per cent.
“It was also far lower than the fall in Foreign Direct Investment (FDI) flows to low-and middle-income countries, which, excluding flows to China, fell by over 30 per cent in 2020.
“As a result, remittance flows to low- and middle-income countries surpassed the sum of FDI of $259billion and overseas development assistance of $179billion in 2020.”
The brief said that the main drivers for the steady flow included fiscal stimulus that resulted in better-than-expected economic conditions in host countries and a shift in flows from cash to digital and from informal to formal channels.
It added that cyclical movements in oil prices and currency exchange rates were also responsible.
The ‘Migration and Development Brief’, released in Washington D.C., provides updates on global trends in migration and remittances.
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More Synergy’ll Win Fight Against Oil Theft, Fubara Tells CDS …Promises Six Gun Boats To Tackle Sea Piracy
Rivers State Governor, Sir Siminalayi Fubara, has revealed that against orchestrated sabotage by disgruntled elements to frustrate the fight initiated by his administration to tackle illegal bunkering in the State, formidable successes have been recorded, undoubtedly.
The Governor expressed delight that the success will further be sustained, given the commendable interest shown by the Presidency that has constituted the Niger Delta Monitoring Team, and tasked with the mandate to curb oil theft and illegal refining of crude oil in the entire region.
Governor Fubara spoke when he received the Chief of Defence Staff, General Christopher Musa, who led a delegation of the Joint Federal Government Team on Security of National Assets on courtesy visit to Government House in Port Harcourt, last Wednesday.
The Governor said those saboteurs are not only attempting to disrupt the course of delivery of critical projects and good governance but extended it to create disaffection within the thriving business climate because they do not want to see anything good reckoned with his administration.
But Governor Fubara stated that he is not deterred by those acts because there is a stronger determination to rewrite the story and ensure that Rivers people get the best while the national economy does not suffer by what happens in the State.
Governor Fubara said: “You know what they say, everything might not be God’s wish, but everything worketh for God’s desire.
“We are faced with a situation where the little that we are doing here are being sabotaged by some persons who do not want to see any good in what we are doing.
“This is not just in the aspect of governance, but also in the aspect of economic activities of this country. And, one way or the other, this particular moment has created an opportunity for us to rewrite those stories.”
Governor Fubara emphasised: “I can say here boldly that before this time, we’ve had a very wonderful working relationship with the Service Commanders here. And in Rivers State, we have done so much in the aspect of combating illegal bunkering and pipeline vandalisation.
“And, you can imagine what has just happened now. When the Federal Government is now being part of it, through the different headquarters of the (military) service arm, to complement what we are doing. I can assure you that it is going to be a total success.”
Governor Fubara stated his confidence in the calibre of members of the Team and how professional the Chief of Defence Staff has conducted their operations.
The Governor also explained that he did not appoint Henry Wordu into the team merely because he knows him, but because of his interest to defend the State and Nigeria.
He said: “It is very important, some persons may chose people because they are their relations; they are their friends, no. We need to look at people who can represent us well. He is a man who has shown so much concern, interest in the affairs of our State. So, I have no doubt that he will bring honour to us.”
The Governor also explained the drastic decision that has been taken to curb incidences of piracy at some sea routes in the State.
Governor Fubara also said: “You mentioned something, the issue of sea pirates. That is even one of the problems I am having today.
“Because of what we are doing through the Navy and the Air Force, which are also supporting us, they’ve all entered into the waterways now.
“The waterways around Bonny Local Government Area are the tracks they operate now; kidnapping of innocent people who are coming from Bonny Island to Port Harcourt or some of them on their way from Port Harcourt to Bonny Island.
“As we are talking now, we have already started doing something. Myself and the Office of the Secretary of the State Government, have already directed them to acquire six gun boats, so we can handover some of them to the Navy, so that they can cover some areas of interest.”
Governor Fubara restated his resolve to ensure that everything goes on well by providing the needed State Government’s support that will contribute to increasing crude oil production.
He added: “I can assure you that we will give all the necessary support to the committee to make sure that they succeed.
“Let me, on behalf of the Government and people of Rivers State, assure the Chief of Defence Staff that our collaboration in supporting the course of the Federal Government to ensure that (crude oil) production line increases by next year is a task that must be done, and Rivers State will be part of it to make it succeed,” he added.
In his speech, the Chief of Defence Staff, General Christopher Musa, said his visit is two-fold: first, is to assess the level of implementation of their directives towards achieving the mandate of Mr President in securing the oil producing areas, ensure that crude oil production increases.
The second reason, he said, is to inaugurate the two committees: the Defense Joint Monitoring Team and the Defense Joint Intelligence Infusion Centre.
General Musa explained: “Now, why we have these two is to enhance the work we already have been doing on ground. We have observed over time that there are gaps in the activities ongoing, and for us to be able to achieve the mandate of the Commander-in-Chief and President of Nigeria, we have to do things differently.
“And firstly, what we did was that with the Operation Delta Safe (ODS), we made sure that all the security forces and other agencies are working together under the Joint Task Force.
“They have their company Commanders and personnel, and whatever that is being done, we are doing it together in unison. We understand that synergy is very crucial to our success, and that is the first thing that we did.
“And secondly, the Monitoring Team and the Infusion Centre. The Monitoring Team is to also go round and see where they are gaps to be able to direct the operations so that they can be able to see that things are covered.”
General Musa added the Infusion Centre is task to also harmonize all the intelligence agencies together, gather all the information, whether it deals with oil production or other acts of criminality that will help in taking direct action to ensure that there is peace.
The Chief of Defence Staff also expressed appreciation to Governor Fubara for creating an enabling environment with his sterling leadership style.
He noted that there is zero rancor which has engendered peace and security as seen in Rivers State.
He said, “We want to say a very big thank you, and to continue to show and assure you that the Armed Forces of Nigeria are fully with you to ensure that Rivers State, indeed, is peaceful and progressive. We want to also appreciate you for the support directly to the members of the Armed Forces.”
He added that the peaceful atmosphere created by the government has enabled members of the Armed Forces in the State to perform their operations and other activities unhindered, and urged the Governor to continue to show leadership by sustaining peace and advancing the development of the State.
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Ending Open Defecation In Nigeria Our Priority -UNICEF
The United Nations Children’s Fund (UNICEF) has affirmed its commitment to end open defecation in Nigeria.
Jane Bevan, Chief of Water, Sanitation and Hygiene (WASH), UNICEF, stated this at a two-day media dialogue themed “Ending Open Defecation in Nigeria and Elimination of Neglected Tropical Diseases (NTDs)” in Lagos.
Bevan emphasised that collaboration from all sectors was crucial in achieving this goal.
“We are not just working toward an open defecation-free Nigeria; we are building a sustainable future where improved sanitation drives health, economic growth and environmental resilience.
“We need the government, partners and the private sector to join us in making Nigeria open defecation-free.
“We also need the media to assist us in sensitising the public to the dangers of open defecation.
“By leveraging the power of information, we can create a movement that not only raises awareness but also translates into tangible actions for ODF at the community level.
“We must keep this campaign on the front burner,” she said.
In her remarks, Mrs Chizoma Opara, a Deputy Director, Federal Ministry of Water Resources and Sanitation, expressed concern over the persistence of open defecation in the country.
Opara, who is also the National Coordinator of the Clean Nigeria Campaign, noted that the 2021 WASHNORM reports, revealed that more than 48 million Nigerians still engage in the practice.
“Open defecation is a sanitation and hygiene-related issue and a significant contributor to the spread of NTDs.
“Diseases like onchocerciasis, schistosomiasis, trachoma, lymphatic filariasis, and soil-transmitted helminthiasis (STH) are transmitted through contaminated soil and faeces, perpetuating a cycle of poverty, malnutrition and ill health.
“By addressing open defecation, we can significantly reduce the transmission of NTDs,” Opara said.
Aituaje Iruobe, popularly known as WAJE and a UNICEF Champion, expressed concern on the high rate of open defecation in Nigeria, reiterating her commitment to leading the campaign against the practice.
The Tide source reports that the event also featured a panel of discussion with stakeholders deliberated on strategies to eliminate open defecation and related issues.
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We’ll Be Forced To Export 97% Of Our Petrol, Dangote Refinery Warns …NNPCL Requests Office Space At Dangote Refinery
Dangote Refinery has said that it will be forced to export 95-97 percent of its Premium Motor Spirit (petrol) because of low patronage by marketers in Nigeria.
This is as the 650,000 barrels per day indigenous oil firm revealed that only three to five percent of petrol marketers are willing to buy its petrol.
The Vice President, Oil and Gas at Dangote Industries Limited, Devakumar Edwin, disclosed this on Wednesday during an X Space session organised by Nairametrics.
Dangote Refinery has said that it will be forced to export 95-97 percent of its Premium Motor Spirit (petrol) because of low patronage by marketers in Nigeria.
This is as the 650,000 barrels per day indigenous oil firm revealed that only 3 to 5 percent of petrol marketers are willing to buy its petrol.
The Vice President, Oil and Gas at Dangote Industries Limited, Devakumar Edwin, disclosed this on Wednesday during an X Space session organized by Nairametrics.
He gave insights into the challenges facing the Dangote Refinery and the country’s oil and gas sector.
“I’m selling 2 to 3 percent to small traders who are willing to buy, while the rest 95 to 97 percent I’m forced to export,” he said while speaking about the quantity of the refinery’s products sold locally.
The development comes as Sunday’s date for NNPCL to lift Dangote Refinery’s fuel approach without a visible plan.
Recall that the President of Dangote Group, Aliko Dangote announced Dangote Refinery’s first petrol rollout.
He, however, disclosed its distribution to marketers is dependent on the NNPCL.
Meanwhile, the Vice President (Oil & Gas) of Dangote Group, Devakumar V.G. Edwin, has revealed that the Nigerian National Petroleum Company Limited, NNPCL, has requested a permanent presence at the Dangote Refinery as part of the crude oil agreement.
Edwin revealed this during a Twitter Space session organized by Nairametrics.
“NNPC has informed us that they intend to station a team of 6 to 10 people permanently at our refinery,” he stated.
Devakumar V.G. Edwin, Vice President (Oil & Gas) of Dangote Group, has revealed that the Nigerian National Petroleum Company Limited, NNPCL, has requested a permanent presence at the Dangote Refinery as part of the crude oil agreement.
Edwin revealed this on Thursday during a Twitter Space session organized by Nairametrics.
“NNPC has informed us that they intend to station a team of 6 to 10 people permanently at our refinery,” he stated.
“They’ve asked us to provide office space for them since they will be supplying the crude, overseeing the production, and buying back the products in Naira.”
Nigerians are hoping that the production and sale of petrol by the Dangote Refinery would help soften the hardship in the country.
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