CBN targets $12bn annual Diaspora inflows to boost FX liquidity

The Central Bank of Nigeria (CBN) has set an ambitious target of raising diaspora remittances to $1 billion per month by the end of 2026, as part of its broader strategy to diversify foreign exchange inflows and strengthen the country’s external position.

CBN Governor Olayemi Cardoso disclosed the target on Thursday while speaking at the BusinessDay CEO Forum Nigeria in Lagos, saying the initiative is already delivering encouraging results through increased engagement with Nigerians living abroad and stronger collaboration with commercial banks.

If achieved, the target would represent a nearly 67 per cent increase from the current monthly remittance inflow of more than $600 million.

“We are expecting that by the end of the year, we will hit about a billion dollars a month from diaspora remittances,” Cardoso said.

According to the CBN governor, the apex bank has deliberately focused on addressing long-standing concerns that discouraged Nigerians in the diaspora from using formal remittance channels.

He said the strategy includes working closely with financial institutions while engaging directly with Nigerians overseas to improve confidence in the country’s remittance system.

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“We did exactly that. That is still work in progress. We’re not relenting on that. We’re continuing on that trajectory,” he added.

Nigeria has increasingly relied on diaspora remittances as one of its major sources of foreign exchange alongside crude oil exports and foreign portfolio investments, particularly as authorities seek to improve foreign currency liquidity and reduce pressure on the naira.

According to available data, diaspora remittances reached $21.8 billion in 2025, slightly above the $20.93 billion recorded in 2024 despite tighter immigration policies in major destination countries, rising transfer costs and global economic headwinds.

World Bank figures also show that Nigeria received nearly $19.5 billion in remittances in 2023, accounting for approximately 35 per cent of all remittance inflows into Sub-Saharan Africa during the year.

Cardoso attributed the recent improvement in Nigeria’s external reserves to the foreign exchange reforms introduced by the apex bank since he assumed office in September 2023.

According to him, the country’s gross external reserves have risen by about 63 per cent to nearly $52 billion, while net external reserves have increased significantly from approximately $3 billion to over $40 billion within the same period.

The latest CBN data shows that Nigeria’s external reserves climbed to $51.86 billion on July 14, 2026, their highest level in more than 17 years, surpassing the central bank’s projection for the entire year.

The reserve growth has been supported by stronger export earnings, improved foreign exchange inflows and a series of market reforms aimed at enhancing transparency, attracting foreign investment and restoring confidence in Nigeria’s financial markets.

Looking ahead to the Central Bank’s next Monetary Policy Committee (MPC) meeting scheduled for July 21, Cardoso said members of the committee would base their interest rate decision on the latest economic indicators.

His comments followed the release of new data by the National Bureau of Statistics (NBS) showing that Nigeria’s headline inflation rate remained broadly stable at 15.91 per cent in June, compared with 15.93 per cent in May, suggesting that inflationary pressures may be moderating.