Nigeria’s diaspora remittances have reached an unprecedented $20.93 billion in 2024, according to the latest economic data released by the Central Bank of Nigeria (CBN), signaling growing confidence in the country’s financial reforms and foreign exchange policies.
The apex bank disclosed this figure yesterday during its quarterly economic briefing in Abuja, representing a significant increase from previous years and highlighting the expanding role of Nigeria’s global citizens in bolstering the nation’s foreign exchange reserves.
CBN Deputy Governor for Economic Policy, Dr. Kingsley Obiora, who presented the data, attributed the remarkable growth to recent policy adjustments that have stabilized the foreign exchange market and created more attractive channels for diaspora Nigerians to send money home.
“The impressive performance we’re witnessing in personal remittances reflects renewed trust in our banking system and the success of our efforts to harmonize exchange rates,” Dr. Obiora stated. “When we create reliable and efficient payment corridors, Nigerians abroad respond positively.”
Analysis of the figures reveals that remittance inflows have shown consistent month-on-month growth throughout 2024, with particularly strong performances recorded during festive periods and the third quarter of the year.
The United States, United Kingdom, Canada, Germany, and United Arab Emirates emerged as the top five sources of these remittances, collectively accounting for approximately 73% of total inflows, according to the CBN report.
Financial experts have highlighted the strategic importance of these remittances to Nigeria’s economic health, especially in light of fluctuating oil revenues and ongoing diversification efforts.
These diaspora funds represent a crucial economic lifeline that directly impacts household welfare, small business investments, and provides much-needed foreign exchange stability,” said Professor Isa Maidugu, Head of Economics Department at Ahmadu Bello University. “At nearly $21 billion, we’re talking about an amount that exceeds our annual budget for education and healthcare combined.
The World Bank had earlier projected strong growth in remittances to Nigeria, but the actual figures have surpassed even those optimistic forecasts by approximately 12%, making Nigeria the largest recipient of diaspora funds in Sub-Saharan Africa and among the top globally.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, welcomed the development, noting that it aligns with the administration’s broader economic recovery strategies.
“These remittance figures demonstrate the powerful connection between Nigerians abroad and their homeland. Beyond the numbers, each dollar represents familial bonds and patriotic commitment,” Edun remarked during a press briefing. “Our goal is to leverage these inflows for sustainable development by creating investment products specifically targeted at diaspora Nigerians.
The CBN has outlined plans to further enhance remittance inflows through technological innovations and partnership with international money transfer operators to reduce transaction costs and improve delivery speed.
“We are currently developing a specialized digital platform that will allow seamless integration between remittance services and investment opportunities in Nigeria, effectively converting these flows from consumption support to development capital,” Dr. Obiora revealed.
Financial inclusion advocates have noted that the record remittances are already having tangible impacts at community levels, with several states reporting increased construction activities and small business formations in areas with high concentrations of families receiving overseas support.
Banking sector analysts project that if the current trajectory continues, annual remittances could exceed $25 billion by next year, potentially transforming the nature of Nigeria’s foreign exchange management and providing a buffer against external shocks.
“What we’re seeing is more than just money transfers it’s a vote of confidence in Nigeria’s economic direction and a demonstration of the often-underappreciated economic power of our diaspora communities,” concluded Dr. Obiora.
The CBN has promised to publish a comprehensive report on the developmental impact of these remittances by the end of the second quarter, with particular focus on regional distribution and sectoral allocation of the funds.
