Nigeria Eyes $1B in Monthly Diaspora Remittances
TLDR
- Nigeria's central bank targets $1 billion monthly remittances from overseas citizens.
- Governor Olayemi Cardoso implements new banking products to boost remittance flows.
- Monthly remittance inflows increased from $250 million in April to $600 million by September.
Nigeria’s central bank aims to attract $1 billion in monthly remittances from its overseas citizens, Governor Olayemi Cardoso said after the International Monetary Fund and World Bank Annual Meetings in Washington.
Cardoso said the bank had addressed concerns from international money transfer operators (IMTOs) and introduced new banking products to boost remittance flows.
In April, monthly inflows stood at $250 million but have since increased to $600 million as of September, following reforms and resolutions of IMTO-related challenges. Cardoso expressed confidence that these measures would help Nigeria reach the $1 billion monthly target.
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Key Takeaways
Nigeria and Kenya rank as the first and third largest recipients of diaspora remittances in sub-Saharan Africa. In 2023, remittances to Nigeria represented 38% of the total $58 billion remittance flows to the region, experiencing a 2% growth. Ghana and Kenya saw estimated gains of 5.6% and 3.8%, respectively. The growth in Nigeria’s diaspora remittance figures offers the apex bank more firepower to meet the increasing demand for FX amid the country’s ongoing forex shortage crisis. Beyond that, however, the trend gives credence to several remittance-focused tech startups—like NALA, Chipper Cash, Zazuu, and Sendwave looking to capture some market share from dominant traditional players that control as much as 80% of the market—and Pangea, Daba Finance, and Bantaba, which aim to address help startups source capital by connecting founders with the diaspora wealth through digital infrastructures.
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