Nigeria targets $1B monthly diaspora inflows amid reforms

The Central Bank of Nigeria (CBN) has called on commercial banks to take advantage of recent financial reforms to increase monthly diaspora transfers to $1 billion by the end of 2026, amid improving economic conditions and ongoing structural reforms.

Speaking at the spring meetings of the International Monetary Fund and the World Bank in Washington, CBN Governor Olayemi Cardoso stressed the need to streamline official remittance channels, which he said are still affected by high costs and operational delays, News.Az reports, citing foreign media.

According to the Central Bank, the issue is not only about mobilising foreign currency inflows, but also about ensuring sustainable growth in remittances. Such growth, the bank argues, would help strengthen foreign reserves, stabilise the naira, and reduce Nigeria’s exposure to external economic shocks.

Cardoso also pointed to early effects of ongoing reforms, including slowing inflation, a more stable foreign exchange market, and improved monetary policy transmission. He described these as signs of a gradual return of investor confidence in the economy of Nigeria.

Banking regulators further highlighted the recapitalisation of the banking sector, which raised about 4.65 trillion naira (approximately $3 billion). The process was largely driven by domestic investors but also attracted notable foreign participation. Authorities have presented the exercise as a key test of the resilience and strength of Nigeria’s financial system.

News.Az 

By Nijat Babayev