IFAD president says remittances are vital to economic stability

16 Jun 2016, 12:00 am
Financial Nigeria

Summary

Nwanze said remittances have become a lifeline for fragile and post-conflict societies.

Kanayo Nwanze, President, International Fund for Agricultural Development

Ahead of the International Day of Family Remittances, marked every year on June 16, President of the United Nations International Fund for Agriculture Development (IFAD), Kanayo F. Nwanze, said on Wednesday that greater recognition should be given to the vital financial contribution migrants make to the economic stability of their families and home countries.

Nwanze said remittances have become a lifeline for fragile and post-conflict societies particularly in Africa and the Middle East.

“The remittances sent back to relatives provide a lifeline, particularly to tens of millions of families living in fragile or post-conflict societies,” Nwanze said. “Remittances can help rebuild the fabric of societies, spark economic development, and bring the stability necessary for a hopeful future.”

About 250 million migrants living outside their countries of origin sent nearly $450 billion back home in remittances in 2015. Over the same period, 60 million people were forcibly displaced due to violent conflicts and political upheavals, including 20 million refugees who fled across international borders.

“No matter how many people leave their home countries to escape poverty or conflict, many more remain behind,” Nwanze said. “It is important to focus on those living in distressed regions where the positive impact of remittances can count the most.”

Nwanze said Lebanon, Sri Lanka, and El Salvador are examples of conflict societies that have been rebuilt with the help of remittances. He said IFAD-supported activities among the Somali diaspora in Europe and the United States have also resulted in targeted investments that have had a positive impact on Somalia’s agriculture sector.

As an indication of the transformative potential of remittances, the IFAD president said that the new Sustainable Development Goals have set a target of 15 years to end extreme poverty. Within this time, he said migrants abroad will have sent an accumulated $7.5 trillion to their hometowns in developing countries.

In Nigeria, remittances from the 15 million Nigerians living abroad reached $20.77 billion in 2015, making Nigeria the sixth largest recipient of remittances in the world, according to the World Bank’s Migration and Remittances Factbook 2016. The top two sources of Nigerian remittances in 2015 were the United States ($5.7 billion) and the United Kingdom ($3.7 billion).


Related

Sustainable Development Section Sponsor

  • Access Bank Plc ...Financing the future
  • ... Sustainable Cities