Nigeria attracts record $947m diaspora dollars as remittances ne

Nigeria’s foreign exchange market received a record $947 million in formal diaspora remittances in July 2026, leaving the country just $53 million short of the Central Bank of Nigeria’s $1 billion monthly target and providing another boost to official dollar liquidity.

The July inflow, disclosed by the CBN, represents the highest monthly remittance inflow ever recorded through International Money Transfer Operators (IMTOs) and extends a sharp recovery in formal diaspora transfers.

Total IMTO remittances reached $3.8 billion in the first seven months of 2026, representing a 50.2 per cent increase over the corresponding period of 2025.

The acceleration marks significant progress towards the CBN’s ambition of moving at least $1 billion in monthly diaspora funds through formal channels.

CBN Governor Olayemi Cardoso said the July figure showed that the target, which was announced nearly two years ago, was becoming achievable.

“At US$947 million in July, we are now approaching that milestone,” Cardoso said.

The surge is particularly important for Nigeria’s foreign exchange market because formal remittance inflows increase the supply of dollars available through regulated channels, potentially reducing pressure on the naira and narrowing incentives for transactions outside the official system.

The CBN attributed the growth to reforms designed to make formal remittance channels more competitive, transparent and accessible.

Among the measures are the transition towards a more market-determined exchange rate, changes to the regulatory framework for IMTOs and the introduction of the Non-Resident Bank Verification Number (NRBVN).

The apex bank has also increased engagement with IMTOs, commercial banks and Nigerians living abroad to address obstacles limiting formal remittance flows.

Earlier this year, the CBN directed all IMTOs operating in Nigeria to maintain naira settlement accounts with authorised dealer banks, strengthening monitoring, traceability and oversight of remittance transactions.

The directive, issued in a March 24, 2026 circular, was intended to improve transparency and ensure more effective monitoring of diaspora inflows.

The growing remittance pipeline also has direct implications for Nigerian households.

Diaspora transfers support household consumption, education, healthcare and investment, while providing an important source of foreign exchange for the wider economy.

The CBN said stronger formal inflows could therefore improve both household financial capacity and Nigeria’s external financing position.

The July performance builds on strong growth in the first quarter.

IMTO inflows reached a record $1.29 billion in Q1 2026, up 45 per cent from $888.47 million in Q1 2025.

Monthly inflows stood at $506.66 million in January, $402.13 million in February and $377.93 million in March, with all three months exceeding their corresponding 2025 figures.

The CBN, however, cautioned that monthly flows can fluctuate and said its priority was to sustain the broader upward trend rather than focus exclusively on individual records.

The bank plans to deepen engagement with Nigerians abroad, IMTOs and financial institutions in major international financial centres to reduce transaction friction and encourage more diaspora funds into regulated channels.

Cardoso said the ultimate goal was not only to cross the $1 billion monthly threshold, but to make such inflows sustainable.

For Nigeria, the significance of the latest figure extends beyond the record itself. At $947 million in one month and $3.8 billion in seven months, diaspora remittances are becoming an increasingly important source of formal foreign-exchange liquidity at a time when the country is seeking stronger reserves, greater naira stability and reduced dependence on volatile capital flows.

The immediate challenge is to convert this momentum into consistent monthly inflows above $1 billion, while ensuring that more of the money Nigerians abroad send home passes through transparent and regulated financial channels.