Market News

 By : Olayide Soaga

As the United States Government introduces a bill that would tax remittances sent from the country to other countries, Nigeria and other countries are about to experience an economic setback.

This bill seeks to place a 3.5 percent tax on remittances and money sent by migrants to their home countries and will apply to about 40 million non-US citizens, including green card holders, temporary workers, and undocumented immigrants.

The bill has passed the US House of Representatives, and if implemented, it would cause Nigerians to lose about $215 million.

Migrants in various countries across the world, including the US, often send money to their home countries. These remittances are usually in the form of cash or electronic transfers, sent via formal or informal channels.

In countries like Nigeria, Monrovia and Liberia, these foreign remittances make up a significant portion of GDP. Nigeria, for instance, received over $20 billion in remittances in 2023.

In 2024, Nigeria received approximately $20.9 billion in foreign remittances, marking a 9% increase from the $19.5 billion recorded in 2023. This was the highest level in five years.

Remittance inflows continued to grow as of early 2025, with $328.76 million recorded in the first four months of the year. The Central Bank of Nigeria aims to further increase monthly remittance inflows to $1 billion