The Central Bank of Nigeria (CBN) has announced plans to double diaspora remittance flows to $39 billion by 2025.
CBN Governor Olayemi Cardoso unveiled this plan during the BusinessDay CEO Forum, themed ‘Leadership in Tough Economic Times,’ held on Thursday.
Governor Cardoso said diaspora remittances play a critical role in Nigeria’s economy, therefore, it is necessary to address the challenges within the financial sector.
“As a result of the challenges we have faced, one of the things we’ve done on the monetary side is to recognize that diaspora remittances are very key,” he stated.
“We set up a committee during the last World Bank meetings in Washington, inviting international money transfer operators from all over the world to engage with us on this issue.”
Cardoso said collaboration and innovative strategies are important to achieve this goal.
“At the end of that meeting, we concluded that based on the dialogue we had, we are committed to doubling the remittance flow within a year,” he said. “If we can replicate this success in other areas, we will reach our desired financial stability.”
In 2023, Nigeria received $19.5 billion in international remittances, according to the World Bank, marking a 2.5 percent decline from the previous year.
Despite this drop, remittances accounted for 35 percent of total inflows into Sub-Saharan Africa, underscoring their significance.
The CBN’s plan aims to boost this figure substantially, providing much-needed support to the Nigerian economy.
Governor Cardoso’s announcement has been met with optimism by financial experts and stakeholders.
The increased inflow of remittances is expected to alleviate foreign exchange shortages, support the naira, and enhance overall economic stability.
However, achieving this target will require addressing systemic issues within the remittance process, including reducing transaction costs and improving the efficiency of money transfer services.
“We are creating a more favorable environment for remittance flows,” Cardoso explained. “This involves regulatory reforms, incentivizing the use of official channels, and leveraging technology to make transfers easier and more secure.”
The CBN’s initiative aligns with broader efforts to diversify Nigeria’s economy and reduce its dependence on oil revenues. By harnessing the financial contributions of the Nigerian diaspora, the country aims to build a more resilient and inclusive economic framework.
As the CBN moves forward with its plan, the success of this initiative will depend on continued collaboration with international partners, transparent policies, and the active participation of the Nigerian diaspora community.
Governor Cardoso remains confident that with these measures in place, Nigeria can achieve its ambitious remittance target and pave the way for sustained economic growth.
“The goal is clear,” Cardoso concluded. “By doubling diaspora remittances, we are not only supporting our economy but also strengthening the bond between Nigeria and its global citizens. Together, we can achieve remarkable progress and ensure a brighter future for all Nigerians.”