The Central Bank of Nigeria (CBN) has announced an ambitious target to increase monthly diaspora remittances to $1 billion by the end of the year, as the nation's foreign reserves continue to climb, reaching $38 billion. This goal represents a significant leap from the current average of around $600 million per month, reflecting the central bank's confidence in ongoing policy reforms and improved foreign exchange liquidity.
Current Remittance Figures and Policy Reforms
According to the CBN Governor, Olayemi Cardoso, speaking at a press conference in Abuja, the bank has already seen a notable uptick in remittance inflows following the implementation of new policies aimed at attracting diaspora funds. 'We have recorded a steady increase in monthly remittances, from approximately $400 million in early 2023 to over $600 million in recent months,' Cardoso stated. The CBN has introduced measures such as allowing International Money Transfer Operators (IMTOs) to set their own exchange rates and improving the ease of sending money through digital channels.
Impact on Foreign Reserves
The rise in remittances has contributed to a strengthening of Nigeria's foreign reserves, which have climbed from $33 billion at the start of the year to $38 billion as of July 2026. This increase provides a buffer against external shocks and supports the naira's stability. 'The growth in reserves is a direct result of our policies to boost dollar inflows, including remittances, oil revenues, and foreign portfolio investments,' Cardoso added.
Challenges and Outlook
Despite the positive trend, challenges remain, including global economic uncertainties and the need to sustain policy consistency. The CBN is working with banks and fintech companies to expand access to remittance services in rural areas. 'Our target is ambitious but achievable with continued collaboration across the financial sector,' Cardoso emphasized. The bank expects that achieving $1 billion in monthly remittances will further bolster reserves and support economic growth.
