Nigeria’s remittance inflows hit record $1.57bn as FX supply

Nigeria’s diaspora remittance inflows through International Money Transfer Operators (IMTOs) climbed to a record $1.57 billion in the second quarter of 2026, strengthening foreign exchange supply and providing additional support for the country’s external position amid efforts to sustain naira stability.

Data from the Central Bank of Nigeria’s Q2 2026 Statistical Bulletin show that inflows increased by about 33 per cent year-on-year from $1.18 billion in the corresponding quarter of 2025, exceeding the previous quarterly high of approximately $1.47 billion recorded in the third quarter of 2024.

The latest figure also represents an improvement on the $1.29 billion recorded in the first quarter of 2026, indicating that formal remittance channels are attracting increasingly substantial dollar flows.

The second-quarter performance was driven largely by stronger receipts in May and June. Inflows reached $513.81 million in April, compared with $597.44 million a year earlier, before rising to $472.13 million in May from $288.17 million and $580.16 million in June from $292.25 million in 2025.

June recorded the highest monthly inflow of the quarter, while the combined gains in May and June more than offset April’s decline.

The increase matters for Nigeria’s foreign exchange market because remittances provide a source of dollars independent of crude oil exports and foreign portfolio investment. When channelled through formal operators, the funds can improve dollar availability, support market liquidity and help households meet expenses without relying entirely on domestic income.

For millions of beneficiary households, remittances also provide resources for food, rent, education, healthcare and small-business activities. The additional spending can support local commerce and economic activity, particularly where households use the funds to maintain consumption or finance business operations.

However, the wider economic benefit depends on how the money is used. Remittances directed towards consumption can sustain household welfare and demand, while funds invested in businesses, housing, education or productive assets can generate longer-term economic benefits.

The rising inflows come amid regulatory changes by the CBN aimed at strengthening oversight of the remittance market and improving transparency. In March 2026, the apex bank directed IMTOs to open and maintain naira settlement accounts with authorised dealer banks.

The CBN had earlier removed restrictions on the exchange rates quoted by IMTOs in January 2024, allowing operators greater flexibility in determining rates within the formal market.

The latest figures extend a recovery that began earlier in the year. First-quarter inflows rose 45 per cent year-on-year to $1.29 billion from $888.47 million, following a weaker first half in 2025.

The record receipts could strengthen Nigeria’s external position by diversifying foreign exchange sources at a time when the country is seeking to reduce currency-market volatility and build its reserves. Unlike portfolio inflows, which can reverse quickly when investor sentiment changes, remittances are linked to the earnings and financial decisions of Nigerians abroad, although they can also fluctuate with economic conditions in host countries.

For policymakers, the priority will be sustaining the growth of formal remittance channels and encouraging more of the inflows to support productive investment. The latest record provides a stronger source of dollar liquidity, but its lasting contribution to economic growth will depend on whether the funds also help expand businesses, create jobs and strengthen household financial resilience.