Nigeria Records Highest-Ever Formal Remittance Inflow at $947m

This milestone brings Nigeria within striking distance of the $1 billion monthly remittance target set by Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, as the apex bank intensifies efforts to attract more diaspora funds through official channels.

Cumulative remittance inflows via IMTOs stood at $3.8 billion for the first seven months of 2026, representing a 50.2 per cent increase over the same period in 2025.

The CBN attributes this significant improvement to a series of reforms aimed at making formal remittance services more competitive, transparent, and accessible. These include adopting a more market-determined exchange rate, regulatory reforms for IMTOs, and the introduction of the Non-Resident Bank Verification Number (NRBVN).

The CBN has also increased engagement with IMTOs, banks, and Nigerian diaspora communities across major remittance corridors, while strengthening requirements for transactions to be routed through designated settlement accounts with authorised dealer banks. These reforms are designed to reduce friction in the remittance ecosystem and encourage Nigerians in the diaspora to use formal channels, rather than informal alternatives.

According to Cardoso, July’s performance marks a major milestone in the CBN’s efforts to deepen formal remittance flows. “When we set a clear ambition to reach US$1 billion a month in remittance inflows through formal channels nearly two years ago, some people thought we were dreaming. At US$947 million in July, we are now approaching that milestone,” he said.

He added that the CBN’s goal is not simply to set a single-month record, but to create the conditions for sustained growth in formal remittance inflows. While monthly figures may fluctuate, the broader trend in 2026 points to a continued shift toward formal channels.

Rising inflows could have broader implications for Nigeria’s foreign exchange market by increasing the supply of foreign currency through regulated channels. Higher formal remittance flows also improve visibility over diaspora inflows and support household consumption, investment, and the country’s external financing position.

Cardoso said the CBN would build on recent momentum by deepening engagement with the Nigerian diaspora and financial-sector stakeholders in key global remittance corridors. The bank is also expected to leverage major international financial centres to work with diaspora communities, IMTOs, and banks to reduce transaction frictions and widen access to formal remittance services.

“July is an important marker, but our focus is not on a single month. It is on creating the conditions for sustained growth in formal remittances. We expect to keep seeing improvement and believe Nigeria can reach and ultimately sustain monthly inflows above US$1 billion,” Cardoso said.

With July’s $947 million inflow bringing the $1 billion monthly ambition within reach, the CBN’s key challenge will now be sustaining momentum and ensuring that the increased flow of diaspora funds remains within formal financial channels.