Nigeria’s Diaspora Remittances Surge 61%, Hit $4.22bn

DIASPORA remittances through International Money Transfer Operators (IMTOs) surged to $4.22bn between January and October 2024, marking a remarkable 61 percent growth compared to $2.62bn recorded in the same period last year, says the Central Bank of Nigeria (CBN).

CBN Governor Olayemi Cardoso announced the figures during a session with the Senate Committee on Banking, Insurance, and Other Financial Institutions at the National Assembly. He highlighted the significant monthly jump from $336.61 million in September 2024 to $402.38 million in October 2024.

Cardoso attributed this impressive growth to improved remittance processes, President Bola Tinubu’s economic policies, and increasing confidence among Nigerians in the diaspora to support national development.

‘This growth underscores the positive trajectory of our financial ecosystem and diaspora engagement,’ Cardoso said. He expressed optimism that the inflows would continue to rise by the end of the year.

According to the World Bank, Nigerian diaspora remittances range between $20bn and $25bn annually, a critical lifeline for households in low- and middle-income countries. These funds play a pivotal role in reducing poverty, enhancing nutrition, and boosting outcomes like higher school enrolment rates.

Despite the high inflow, a significant portion of these funds is not channelled into private equity investments, which remains a potential area for economic development.

Analysis

The surge in remittances reflects the dual impact of policy reforms and trust-building measures, but it also highlights a missed opportunity for leveraging these funds for broader investment in the economy. Policymakers might consider creating structured frameworks to direct a portion of these inflows into sectors like infrastructure and small business growth.

With $4.22bn recorded so far and projections indicating further growth, Nigeria’s diaspora contributions could become a cornerstone of its economic stability—provided they are optimally harnessed.