Nigeria targets $1bn monthly diaspora remittances on FX reforms
Nigeria's central bank expects diaspora remittances to reach $1 billion a month by the end of 2026, offering foreign investors a more stable source of foreign exchange as the country reduces its reliance on volatile oil exports.
The Central Bank of Nigeria has doubled diaspora remittance inflows and expects them to reach $1 billion monthly by the end of 2026. Governor Olayemi Cardoso announced the target during a fireside chat at the BusinessDay CEO Forum 2026, moderated by Frank Aigbogun, noting that current inflows have already surpassed $600 million.
The increase follows policy changes designed to eliminate bottlenecks for international money transfer operators and Nigerians living abroad. “We gave ourselves a goal that we would double the remittance inflows between the time we started and the end of the year, and we did exactly that,” Cardoso said.
These remittances are becoming a critical pillar of Nigeria's foreign exchange earnings outside of oil exports, which remain vulnerable to global commodity price swings. The central bank linked the improved inflows to broader market reforms, specifically the elimination of multiple exchange rate windows and increased liquidity. This unification has restored confidence among both overseas Nigerians and international portfolio investors.
By engaging directly with stakeholders across multiple countries, the bank identified operational friction and dismantled it. “Our belief is that through sound policies, understanding where the pain points were, revamping our own policies to ensure there was free entry and free access for everybody, that is what made the difference,” Cardoso said.
The foreign exchange overhaul has also bolstered Nigeria’s external reserves to roughly $52 billion, a significant increase from when the current management took office. Cardoso stressed that these funds now serve as a strategic buffer against external shocks rather than a tool for routine market intervention. Improved market liquidity now allows supply and demand dynamics to dictate the currency's value with minimal central bank interference.
“A reserve is meant to be a reserve. It is not meant to be used for day-to-day management,” he said. The current reserve level provides approximately 10 months of import cover, a key metric foreign investors use to gauge economic and currency stability. Moving forward, the central bank plans to grow these reserves organically through rising remittances and capital inflows rather than imposing administrative controls.
