Key Points

• Nigeria’s diaspora remittances hit $4.22 billion in 2024.

• CBN attributes 61% rise to policy reforms and diaspora trust.

• Remittances remain a vital source of household income and growth.

Diaspora remittances via International Money Transfer Operators (IMTOs) totaled $4.22 billion between January and October 2024, according to the Central Bank of Nigeria (CBN). Compared to the $2.62 billion reported during the same period in 2023, this amount marks a substantial increase.

Nigeria’s diaspora remittances hit $4.22 billion in 2024

The numbers were revealed by CBN Governor Olayemi Cardoso on Wednesday in the National Assembly during a meeting with the Senate Committee on Banking, Insurance, and Other Financial Institutions. Remittance growth is up 61.1% from the previous year.

Remittance inflows increased from $336.61 million in September 2024 to $402.38 million in October 2024, according to Cardoso, who provided a monthly breakdown. He credited the spike to advancements in the remittance procedure, the beneficial effects of President Bola Tinubu’s economic policies, and a rise in the confidence of Nigerians living abroad to aid in the country’s progress.

Citing the present increasing trend, Cardoso expressed optimism that remittance inflows will continue to climb through the end of 2024. He pointed out that the rise is a reflection of restored confidence in Nigeria’s economic trajectory and growing trust in the country’s banking sector.

Nigerians in diaspora boost development with record remittances

The World Bank estimates that Nigeria’s diaspora sends back between $20 billion and $25 billion a year, although the majority of these remittances do not go toward private equity investments. Rather, remittances are a vital source of household income, particularly for families with low and moderate incomes.

The World Bank also underlined how important diaspora remittances are for lowering poverty, enhancing nutrition, and promoting better development results. Higher birth weights and greater rates of school enrollment among underprivileged households in recipient nations have been associated with remittances, according to research.

According to the CBN’s most recent data, remittances are becoming an increasingly important source of foreign cash for Nigeria as the country works to stabilize its economy and fortify the Naira.

According to Cardoso’s forecast for future expansion, remittances would continue to be a crucial source of income for Nigerian households and the country’s economy as a whole.