Nigeria depends largely on Nigerians living abroad to survive as they are the chief enablers financing the nation’s economy. The money sent home by migrants, the remittance inflows proved this.
According to Dr Andrew Nevin the Leader and Chief Economist of PwC, in 2018, Nigeria was the largest recipient of remittance flows to sub-Saharan Africa. In that same year, the value of the migrant remittances made 6.1% of the nation’s Gross Domestic Product. Which is by far, 7.4 times larger than the international aid received the year before that year.
Remittance inflows drag with international aid from foreign countries as one of the largest financial inflows to countries that are developing. According to Nevin, by 2023 the remittance inflows would have skyrocketed to over 29 billion. This feat won’t be affected by the decline in the cost of sending money down-home and the rising migrant populations of Nigerians.
The Chief Economist also sheds light on the undeniable importance of good governance in the stability and prosperity of the economy. He stated that other than the government of Nigeria focusing on raising the nation’s Gross Domestic Product, it should divert its attention to offering adequate services to its citizens.
Also, Sustainable Development Goals should be measured to Gross domestic product. Already, Nigeria compared to every other African country and even globally ranks low on the Sustainable Development Goals Index. There is also the sad case of reduction in public funds and low taxation in the country.
Amongst Brazil, India, South Africa, and Nigeria, Nigeria has the lowest expenditure per capita. To make its citizens be encouraged to pay taxes, the government needs to deliver impeccable goods & services to its people. The Government needs to refrain from their practices of holding back taxes from its employees towards the close of the month.
Since government rules and regulations are too costly, Nigerians have diverted from the formal sector to the informal sector which is less choking and more attractive. This, however, is ugly and detrimental to the economy.
For the economy to grow better and do better, people also need to move back to the formal sector than the informal sector. This, however, won’t be possible if the government doesn’t balance and work on the inequality in their rules and regulations.