CBN targets $1bn monthly diaspora remittances as reforms lift inflows

Nigeria’s diaspora remittance inflows are on course to hit $1 billion every month by the end of 2026, as the Central Bank of Nigeria (CBN) intensifies reforms aimed at attracting more foreign exchange through official channels.

Olayemi Cardoso, the governor of the Central Bank of Nigeria, said this in a fireside chat moderated by Frank Aigbogun, publisher and chief executive officer of BusinessDay Media Limited, during the BusinessDay CEO Forum 2026.

Cardoso said the apex bank’s reforms have already doubled remittance inflows from their previous levels and are expected to become an increasingly important source of foreign exchange for the country.

“We gave ourselves a goal that we would double the remittance inflows between the time we started and the end of the year, and we did exactly that,” Cardoso said.

“We’re not relenting on that. We’re continuing on that trajectory. As at the last time, it was over $600 million, and we’re expecting that by the end of the year it will hit about $1 billion a month from diaspora remittances.”

The projection signals the CBN’s determination to diversify Nigeria’s foreign exchange earnings beyond oil exports, positioning diaspora inflows as a more reliable and sustainable contributor to external reserves amid persistent global economic uncertainty.

Cardoso attributed the improvement in remittance inflows to a series of policy changes that removed bottlenecks for Nigerians abroad and international money transfer operators.

According to him, the apex bank engaged directly with diaspora communities, commercial banks and other stakeholders across multiple countries to understand the pain points discouraging remittances through official channels.

“Our belief is that through sound policies, understanding where the pain points were, revamping our own policies to ensure there was free entry and free access for everybody, that is what made the difference,” he said. “This is a continuous process.”

The governor linked the stronger remittance performance to broader reforms in Nigeria’s foreign exchange market, arguing that the elimination of multiple exchange rate windows and improved market liquidity have restored confidence among Nigerians overseas and international investors alike.

He noted that the reforms have contributed to the growth of Nigeria’s external reserves to about $52 billion* while net reserves have risen significantly from levels recorded when the current CBN management assumed office.

Cardoso explained that stronger reserves should not be viewed as funds for routine intervention in the foreign exchange market but rather as strategic buffers against external shocks.

“A reserve is meant to be a reserve. It is not meant to be used for day-to-day management,” he said, adding that the improved liquidity in Nigeria’s foreign exchange market now allows demand and supply to play a greater role with minimal intervention from the central bank.

He said the country’s reserve position currently provides roughly 10 months of import cover, a metric closely watched by foreign investors when assessing the stability of an economy and its currency.

The CBN governor maintained that the bank intends to continue growing reserves organically through improved market confidence, stronger foreign capital inflows and rising diaspora remittances rather than relying on administrative controls.