Migration Profile on Nigeria - IOM Publications - International ...

Germany, Australia, the Netherlands, Ireland and Denmark. The inflow of
remittances through the banking system from African countries came mainly
from Egypt, Equatorial Guinea, Chad, the Libyan Arab Jamahiriya, South Africa,
Sierra Leone and Ghana, while China was identified as a growing remittancesending
country in Asia (CBN, 2007a).
Indeed, as a World Bank working paper examining the United Kingdom–
Nigeria remittances corridor points out, the mere availability of formal financial
institutions does not guarantee a shift to formal transfer systems. However, the
establishment of a “regulatory framework for the disbursement of remittances
has promoted the use of formal transfers and could be enhanced to promote
higher competition” (World Bank, 2007).
Uses of remittances
Remittances are used by households for consumption, health and
education, and for investments both by the recipients and remitters. Recipients
commonly invest by purchasing shares and stocks and building houses (CBN,
2007a; Ikwuyatum, 2006). Remittances are also used in community projects,
such as the provision of education, health and recreational facilities (CBN,
2007a). In general, remittances contribute to the development of Nigeria and
have been identified as a major indicator of the impact of migration.
64 <strong>Migration</strong> in Nigeria: A Country <strong>Profile</strong> 2009