The Central Bank of Nigeria (CBN) has reported that Nigerians living abroad sent $950 million in diaspora remittances through International Money Transfer Operators (IMTOs) in July 2026. The figure brings the apex bank closer to its target of $1 billion in monthly remittance inflows, a key component of its strategy to strengthen Nigeria's foreign exchange supply.
CBN Deputy Governor Discloses July Remittance Figures at Workshop
Dr Muhammad Sani Abdullahi, the CBN Deputy Governor for Corporate Services, disclosed the remittance figures during a workshop for financial correspondents. He explained that the development reflects the growing importance of diaspora funds to Nigeria's foreign exchange reserves and overall economic stability.
Abdullahi also revealed that total foreign exchange inflows reached $10.82 billion in July, with $7.33 billion—nearly 68%—coming from autonomous sources. He noted that these stronger inflows are helping to reduce Nigeria's reliance on direct foreign exchange provision by the CBN.
FX Reforms Narrow Official-Parallel Rate Gap
The increased focus on diaspora remittances comes amid a series of reforms aimed at making Nigeria's foreign exchange market more transparent and predictable. According to Abdullahi, the reforms began in June 2023 when the CBN consolidated existing FX windows and adopted a willing-buyer, willing-seller framework.
The bank also removed restrictions affecting 43 categories of imports from the official market and settled valid outstanding forward claims. Additional measures included the introduction of the Electronic Foreign Exchange Matching System for interbank transactions and the Nigerian FX Code, which established clearer standards for market conduct.
Abdullahi stated that these reforms have significantly narrowed the gap between official and parallel exchange rates. The average gap fell from 68.2% between January and May 2023 to less than 2%, providing businesses with a more reliable basis for pricing and planning.
Diaspora Funds and Portfolio Inflows Bolster Dollar Supply
The CBN's remittance drive is part of a broader effort to diversify the sources of foreign exchange available to the economy. Abdullahi disclosed that net foreign portfolio inflows totalled $6.31 billion between January and August 2026. Although portfolio investments can be reversed, he said the overall improvement in foreign exchange supply has reduced dependence on direct CBN intervention.
Nigeria's external reserves have also strengthened. Gross foreign exchange reserves stood at $55.60 billion as of September 11, 2026, while the end-August position provided 11.3 months of import cover.
The CBN's focus on increasing diaspora remittances places Nigerians abroad at the centre of efforts to deepen foreign exchange supply and strengthen the country's external position. The bank's target of $1 billion in monthly remittances remains a key goal as it continues to implement policies that encourage more funds to flow through official channels.
