The Central Bank of Nigeria (CBN) has reported that Nigeria’s diaspora remittances facilitated through International Money Transfer Operators (IMTOs) stood at $4.22 billion from January to October 2024. This figure indicates a remarkable 61.2% increase from the $2.62 billion recorded in the corresponding period (Jan-Oct) in 2023.
CBN Governor Olayemi Cardoso made the disclosure during an interactive meeting with the Senate Committee on Banking, Insurance, and Other Financial Institutions on Wednesday December 18 at the National Assembly Complex.
The CBN governor also provided a monthly summation of the data indicating that diaspora remittances rose from $336.61 million in September 2024 to $402.38 million in October 2024.
He attributed the increase in remittances to the improvements in the remittance process aided by technology and described it as one of the positive yields of President Bola Tinubu’s policies as well as the growing desire of Nigerians in diaspora to make a contribution to national development.
The apex bank chief also projected that remittance inflows would continue to increase for the remainder of the year and into the incoming year, given the current positive trajectory.
Another reason for the increased diaspora remittance is that many diaspora based Nigerians are taking advantage of the weakened Naira to acquire assets at home, 9am News Nigeria has learnt.
According to the World Bank data, Nigeria’s diaspora remittance is between $20 billion and $25 billion annually, though most of these funds are not typically remitted through International Money Transfer Operators making them challenging to track.
The World Bank emphasised that remittances are a vital source of income for low and middle income households in low income countries like Nigeria. These remittances play a crucial role in alleviating poverty, improving nutrition, and are strongly linked to overall welfare and other desirable outcomes such as a higher birth weights and increased school enrolment rates among disadvantaged households.
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