Nigeria central bank eyes $1bn monthly diaspora inflows as reserves climb
Nigeria’s central bank aims to lift monthly diaspora remittances to $1 billion by year-end, a push to diversify foreign exchange sources as gross reserves hit a 17-year high.
The Central Bank of Nigeria wants to increase monthly diaspora remittances to $1 billion by the end of 2026, up from current levels above $600 million. Governor Olayemi Cardoso announced the target on Thursday, framing it as a critical step to diversify the country's foreign exchange inflows beyond oil exports and portfolio investments.
To achieve this 67% jump, the regulator is partnering with commercial banks and directly engaging Nigerians living abroad to fix issues that previously pushed money into informal channels. “We are expecting that by the end of the year, we will hit about a billion dollars a month from diaspora remittances,” Cardoso said at a forum in Lagos. “We did exactly that. That is still work in progress. We’re not relenting on that. We’re continuing on that trajectory,” he added.
The drive comes as formal remittance flows steadily climb. Inflows reached $21.8 billion in 2025, edging up from $20.93 billion the previous year and $19.5 billion in 2023, according to World Bank data. Capturing a larger share of these funds through the official banking system directly boosts the central bank's ability to supply dollars to the economy.
Cardoso tied the remittance push to a broader cleanup of the foreign exchange market that has already yielded measurable results. Gross external reserves have surged 63% to nearly $52 billion since he took office in September 2023, reaching $51.86 billion in mid-July. Net reserves have climbed from roughly $3 billion to over $40 billion in the same period.
For investors and corporate treasurers, this reserves recovery signals improving external liquidity and reduced currency volatility risk. However, the central bank is not ready to ease monetary policy just yet.
Headline inflation held steady at 15.91% in June, down marginally from 15.93% in May. Despite this price stability, analysts anticipate the Monetary Policy Committee will keep the benchmark interest rate at 26.5% when it meets on July 21. Cardoso noted the decision will hinge on fresh data, but markets expect a hold due to emerging inflationary threats from higher global energy prices linked to tensions in the Strait of Hormuz.
