Mobile Phones Drive Global Remittances Flows 8.6% Higher in 2021

Image

By Adedapo Adesanya

The United Nations, through the International Fund for Agricultural Development (IFAD), has disclosed that migrant workers sent home an estimated $605 billion to low- and middle-income countries last year.

In a UN study released on Thursday, it was disclosed that this was boosted by an increase in payments sent via mobile phones.

Global remittances flows rose 8.6 per cent compared to 2020 and are projected to grow to $630 billion in 2022.

Such payments are a major source of income for many low-income households, with around 800 million family members expected to benefit in 2022.

Between now and 2030, global remittances will amount to $5.4 trillion, the equivalent of twice the GDP of Africa in 2021, IFAD has estimated.

Speaking on this, the president of the agency, Mr Gilbert Houngbo said, “Remittances lift people out of poverty, put food on the table, pay for education, cover health expenses, allow housing investments and many other family goals beyond consumption.”

However, the report warned that the upward trend would likely slow this year as inflation erodes wages, and as a result of Russia’s invasion of Ukraine.

Many countries in Central Asia depend on remittances from Russia, with payments accounting for as much as 30 per cent of their Gross Domestic Product, said the report.

But the decline in the value of the ruble and the economic impact of sanctions have triggered a “sharp decline in transfers”, IFAD said.

Most of the money sent home by migrant workers is transferred through bricks-and-mortar institutions with clients paying cash, but the coronavirus pandemic saw an important shift towards digital.

With lockdowns and border closures making physical services more difficult to access, mobile phone payments jumped by 48 per cent in 2021.

They still only accounted for 3 per cent of the global total, but Mr Pedro De Vasconcelos, manager of the Financing Facility for Remittances at IFAD, said the trend is set.

This matters because mobile payments are more convenient, particularly for those in rural areas, and are also cheaper.

In Africa — which received $94 billion in remittances in 2021, an increase of 13 per cent in 2020 — transfer fees are the highest in the world.

Share
Related Stories
Image
19-February-2024

Practical Ideas of Russian-African Club for Strengthening Russia-Africa Relations

By Gouend Louis On February 8, the Russian-African Club of MSU named after M.V. Lomonosov held an International Conference: “Development of cultural and humanitarian cooperation between Russia and African countries.” The event took place at the Faculty of Global Processes of Moscow State University. The conference was held as part of the implementation of the decisions of the Second Summit and the Russia-Africa Economic and Humanitarian Forum, which was held on July 27-28, 2023. in St. Petersburg. The event was supported by the Secretariat of the Russia-Africa Partnership Forum of the Ministry of Foreign Affairs of the Russian Federation. The

Image
29-January-2024

ECOWAS Insists Burkina Faso, Niger, and Mali Remain Members

By Adedapo Adesanya  The Economic Community of West African States (ECOWAS) says Burkina Faso, Niger, and Mali remain important members of the bloc as it is yet to receive any direct formal notification about their intention to withdraw from the community. It said the Authority of Heads of State and Government, its highest decision-making organ, remains committed to finding a negotiated solution to the political impasse. In a statement on Sunday, the commission said it has been “working assiduously with these countries for the restoration of constitutional order. Burkina Faso, Niger, and Mali remain important members of the Community and

Image
14-February-2024

Tinubu Prepares for 37th AU Summit In Addis Ababa

By Adedapo Adesanya President Bola Tinubu will depart Abuja on Thursday for Addis Ababa, Ethiopia, to participate in the 37th ordinary session of the assembly of the African Union (AU) heads of state and government. This was disclosed in a statement on Wednesday by the Special Adviser to the President on Media and Publicity, Mr Ajuri Ngelale. He said President Tinubu would join other African leaders in high-level meetings on institutional reforms of the African Union; peace and security; specific thematic issues such as climate change, as well as modalities of participation and priorities of the continental body in the

Image
03-January-2024

OPEC Committee to Hold Meeting Next Month Amid Recent Worries

By Adedapo Adesanya  The Joint Ministerial Monitoring Committee (JMMC) of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) will meet in early February, amid worries about the future of the group following recent developments including another exit. OPEC+ typically holds JMMC meetings every other month, but when faced with volatile market conditions and member unrest, these have sometimes prompted the group to schedule meetings outside the usual schedule. OPEC+ members collectively decided to voluntarily cut 2.2 million barrels per day from the group’s production this quarter, although much of that was production cuts that were already in

More Stories
Image
20-September-2016

JUST IN: Supreme Court Okays Bello As Kogi Governor

By Ebitonye Akpodigha The election of Governor Yahaya Bello of Kogi State has been given a nod by the Supreme Court. Mr Bello’s election as Governor of the state was affirmed by the apex court in Nigeria on Tuesday, September 20, 2016. The pronouncement was made after the seven-man panel headed by Justice Sylvester Ngwata listened to the closing statements of all the counsels involved in the case brought before the court. However, Justice Ngwata disclosed that the court will provide reasons for its decision on September 30, 2016. Mr Bello replaced late Abubakar Audu in the Kogi rerun election

Image
03-November-2021

Investors Purchase 2021 November FGN Savings Bond

By Sodeinde Temidayo David Retail investors interested in purchasing the Federal Government of Nigeria (FGN) savings bond for the month of November 2021 can begin to do so. This is because the Debt Management Office (DMO) has commenced the sale and this can be done through the approved organisations for this. The FGN savings bond is sold every first week of the month and the minimum subscription is N5,000 with N50 million as the maximum amount of the debt instrument that can be bought at a time. The exercise is supervised by the debt office, with proceeds used to finance

Image
31-March-2023

Geo-Fluids, IGI Lift Unlisted Securities Market by 0.09%

By Adedapo Adesanya The unlisted securities market was lifted on Thursday by 0.09 per cent, thanks to the duo of Geo-Fluids Plc and Industrial and General Insurance (IGI) Plc, which appreciated in price during the session. Business Post reports that Geo-Fluids Plc appreciated by 19 Kobo yesterday to close at N2.14 per share versus Wednesday’s value of N1.95 per share, while IGI Plc chalked up 1 Kobo to settle at 8 Kobo per unit, in contrast to the preceding session’s 7 Kobo per unit. As a result, the valuation of the NASD Over-the-Counter (OTC) Securities Exchange increased at the close

Image
14-October-2016

Dylan Jones For GTBank Fashion Weekend

By Dipo Olowookere A notable figure in the lifestyle industry in the globe has been pencilled down for the GTBank Fashion Weekend, reports reaching us confirm. The world-acclaimed veteran of lifestyle journalism, Mr Dylan Jones, will be at the GTBank Fashion Weekend to share his rich insights on the global trends shaping fashion and style. This will take place on November 12 and 13, 2016, in Lagos. Mr Jones, who is the Editor of GQ Magazine UK, has seen it all in the world of fashion and style, having been involved with lifestyle magazines for three decades. Since 1999, Mr

Image
26-January-2021

Lagos Reduces Planning Permit Process to 18 Days

By Adedapo Adesanya The Lagos State Government, through the Ministry of Physical Planning and Urban Development, has promised to review its planning permit processing time from 28 to 18 days and also reduce layout approval process from 90 days to 30 days. This was disclosed by the Assistant Director Public Affairs of the ministry, Mr Mukaila Sanusi, on Monday, January 25 in a statement. It was noted the decision followed a communiqué adopted from resolutions of an annual retreat of the ministry and its agencies in the state. He said the ministry and its agencies resolved to re-engineer their operating

Image
06-December-2016

Denmark, Burkina Faso Strengthen Economic Ties

By Modupe Gbadeyanka Denmark’s Minister for Development Cooperation, Ulla Tørnæs, yesterday met with Burkina Faso’s Minister of Economy, Finance and Development, Rosine Sori-Coulibaly. The meeting was the newly appointed minister’s first meeting with a foreign minister, thus affirming the special partnership between Burkina Faso and Denmark, which so far has lasted for over 30 years. “The Minister of Economy, Finance and Developments visit confirms the close cooperation between Denmark and Burkina Faso on development and stability in Burkina Faso and the wider Sahel region. Since the popular uprising in October 2014, Burkina Faso has, despite the fact that the country

Image
22-January-2018

Another Skye Bank Customer to Turn Millionaire Feb 1

By Modupe Gbadeyanka Customers of Skye Bank Plc in Edo State are patiently anticipating Thursday, February 1, 2018 because on that day, one of them will be N1 million richer in the ‘Reach for the Skye Millionaire’ reward promo draw slated for that day in Benin City. The promo, according to a statement issued by the lender, is for both new and existing customers of Skye Bank. The process would be through a transparent electronic draw projected on a mega screen for members of the public and market leaders to be active participants in drawing the winning account numbers. Apart

Image
21-September-2021

Ngige Confirms FG Borrows from World Bank, Others to Pay Salaries

By Dipo Olowookere Minister of Labour and Employment, Mr Chris Ngige, has confirmed that the federal government under President Muhammadu Buhari borrows funds from international sources to pay salaries of workers because of a shortfall in the country’s revenue. Mr Ngige, while speaking on Sunday night on a programme monitored by Business Post on Channels TV, stated that the government takes borrowed funds from foreign institutions like the World Bank to offset some recurrent expenditures. Last week, after the Senate resumed plenary, a letter from President Buhari requesting approval for fresh offshore loans of $4 billion and €710 million was

Ad
Ad
Recent Stories
Image
22-February-2024

AFCON 2023: Nigerian Content Creators See 200% Rise in Revenue, Views

By Adedapo Adesanya Content creators in Nigeria saw a 200 per cent increase in views and revenue between December 2023 and February 2024, a new study shared with Business Post showed. According to new data released by StarNews Mobile, an African video streaming platform, content creators across Africa experienced a 300 per cent surge in revenues during the 2023 Africa Cup of Nations (AFCON) held between January 13 and February 11, 2024, reaffirming the massive surge in consumption of hyper-localized content from the continent. Based on metrics from StarNews Mobile’s platform, creators in Nigeria were only outshone by their peers

Image
22-February-2024

Two Die, 15 Rescued in Ikoyi-Lekki Link Bridge Boat Mishap

By Modupe Gbadeyanka Two persons have been confirmed dead in a boat accident that occurred on Wednesday night at the Ikoyi-Lekki Link bridge in Lagos. The Lagos State Emergency Management Agency (LASEMA), which confirmed the incident, stated that 15 persons were rescued in the mishap. The agency stated that the boat, which was conveying 17 passengers, was heading to the Ikorodu area of the metropolis from its take-off point, Sandfil, when it capsized at the Powerline area of the popular bridge. It said the body of a female passenger, who drowned, was recovered, while the corpse of the male passenger

Image
22-February-2024

NPPAN Targets $10bn Contribution to Nigeria’s GDP via Palm Biomass

By Adedapo Adesanya The federal government will sign a Memorandum of Understanding (MoU) with the Malaysian government to develop palm biomass in the country as part of efforts to utilise one of the undertapped farm produces in the country. Mr Alphosus Inyang, President of the National Palm Produce Association of Nigeria (NPPAN), made this disclosure, saying palm biomass is a multi-billion dollar economy. “Biomass simply means agricultural waste and we are talking about turning waste into wealth,’’ he said in an interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja. The president said NPPAN was working with

Image
22-February-2024

Salesforce Introduces Clean Energy Programme Management

By Modupe Gbadeyanka A new solution to help electric, gas, and water utilities increase customer participation in clean energy programmes has been introduced by Salesforce. The initiative known as Clean Energy Programme Management for Energy & Utilities Cloud streamlines the launch, management, and oversight of energy efficiency, conservation, electrification, and EV charging programs. It helps utilities manage clean energy initiatives with connected data — like energy usage and billing information — and personalised engagement to promote relevant programmes. This platform also digitises and simplifies the application process for customers, participating contractors, and utility program staff to help increase clean energy

Image
22-February-2024

Dangote Sugar to Borrow N50bn from Commercial Paper Sales

By Aduragbemi Omiyale The management of Dangote Sugar Refinery Plc is requesting about N50 billion from capital market investors for its short-term working capital and funding requirements. The sugar miller will get the funds from investors through the sale of commercial papers and has promised to repay in about nine months’ time. The CP sales will be conducted under its N150 billion commercial paper issuance programme approved by the regulatory authorities. It is the first series the company is selling this time and it specifically has a tenor of 266 days with a discount rate of 15.92 per cent and

Image
22-February-2024

NASD Unlisted Security Index Depreciates by 0.77%

By Adedapo Adesanya A 0.77 per cent loss was suffered by the NASD Over-the-Counter (OTC) Securities Exchange on Wednesday, February 21 following profit-taking in three stocks. Aradel Holdings Plc went down by N49.50 during the session to close at N2,476.50 per share versus the previous day’s N2,526.00 per share, Central Securities Clearing System (CSCS) Plc depreciated by 37 Kobo to end the day at N19.63 per unit compared with Tueday’s closing price of N20.00 per unit, and FrieslandCampina Wamco Nigeria Plc deflated by 7 Kobo to settle at N74.43 per share, in contrast to the N74.50 per share it traded

Image
22-February-2024

Naira Appreciates at Official Market, Falls at Black Market

By Adedapo Adesanya The Naira appreciated against the United States Dollar in the official market and the and the peer-to-peer (P2P) windows of the foreign exchange (FX) market but depreciated in the parallel market on Wednesday, February 21 as several scare tactics to ease the weakening local currency continues. In the Nigerian Autonomous Foreign Exchange Market (NAFEM), the domestic currency gained 0.6 per cent or N8.66 on the greenback to close at N1,542.58/$1 compared with the previous day’s N1,551.24/$1. However, the Naira maintained stability against the Pound Sterling and the Euro in the spot market in the midweek session at

Image
22-February-2024

Crude Oil Jumps as Geopolitical Tensions Persist

By Adedapo Adesanya Crude oil appreciated on Wednesday as geopolitical tensions continued in the Middle East and traders assessed signs of near-term supply tightness. Brent crude was up by 69 cents or 0.8 per cent to $83.03 a barrel while the US West Texas Intermediate (WTI) crude jumped by 87 cents or 1.1 per cent to settle at $77.91 per barrel. Houthi attacks on commercial vessels in the Red Sea and Bab al-Mandab strait have continued to stoke concerns over freight flows through the critical waterway. The Iran-aligned Yemeni Houthis have carried out repeated drone and missile strikes since November in

Image
22-February-2024

Investors Recover N165bn as FBN Holdings, BUA Cement, Others Gain

By Dipo Olowookere The bulls recaptured the Nigerian Exchange (NGX) Limited on Wednesday after the bears dominated for two straight days as a result of panic selling due to the macroeconomic environment, especially with the poor performance of the Naira in the foreign exchange (FX) market. During the midweek session, the local bourse finished higher by 0.30 per cent on renewed bargain-hunting activities by investors. This raised the market capitalisation of the domestic exchange by N165 billion to N55.464 trillion from N55.299 trillion, as the All-Share Index (ASI) grew by 301.71 points to 101,362.38 points from 101,060.67 points. Business Post

Image
21-February-2024

Tinubu Appoints Kemi Nanna Nandap as Comptroller-General of Immigration

By Modupe Gbadeyanka The Deputy Comptroller-General (DCG) of the Nigeria Immigration Service (NIS), Ms Kemi Nanna Nandap, has been elevated to the post of the Comptroller-General of the agency. This followed her appointment by President Bola Tinubu, according to a statement issued by his spokesman, Mr Ajuri Ngelale, on Wednesday. The presidential aide disclosed in the statement today that the appointment of Ms Nandap will take effect from Friday, March 1, 2024. She is taking over from Mrs Caroline Wura-Ola Adepoju, whose term in office expires on February 29, 2024, the disclosure said. “President Bola Tinubu has approved the appointment