Nigeria’s diaspora remittances jump 61% in one year

The Central Bank of Nigeria (CBN) has reported that diaspora remittances through International Money Transfer Operators (IMTOs) totalled $4.22 billion from January to October 2024, almost doubling the $2.62 billion recorded in the corresponding period in 2023.

Olayemi Cardoso, governor of the apex bank, disclosed this during an interactive session with the Senate Committee on Banking, Insurance, and Other Financial Institutions on Wednesday at the National Assembly.

The increase in remittances represents a growth of approximately 61.1 percent in one year.

Providing a monthly breakdown, Cardoso noted that remittances rose from $336.61 million in September 2024 to $402.38 million in October 2024.

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The CBN governor attributed the increase to enhanced efficiency in the remittance process, the positive impact of President Bola Tinubu’s policies, and the growing confidence of Nigerians in the diaspora to contribute to national development.

Cardoso further projected that remittance inflows would continue to rise by the end of the year, given the current trajectory.

According to the World Bank, the Nigerian diaspora remits between $20 billion and $25 billion annually, though these funds are not typically channelled towards private equity investments.

The global financial institution emphasised that remittances are a vital source of household income for Low- and Middle-Income Countries (LMICs). They play a significant role in alleviating poverty, improving nutrition, and are linked to better outcomes such as higher birth weights and increased school enrolment rates among disadvantaged households.