KEY POINTS
- Nigeria diaspora remittances surged to $600 million monthly.
- CBN projects $1 billion in inflows by next year.
- Rising flows help further diversify Nigeria’s forex portfolio.
According to Central Bank Governor Olayemi Cardoso, Nigeria’s diaspora remittances have risen by 200 percent in just two months, reaching $600 million. This is a new boost for the country’s foreign exchange profile.
Cardoso remarked during the Delta State-Brazil Business and Investment Roundtable in Sao Paulo, Brazil, that inflows have gone up from roughly $200 million to $600 million a month. He thought that remittances may reach at least $1 billion a month by next year.
Nigerians living abroad send money back home, which boosts the forex profile
The governor said that the stronger exchange rate and better ways to transfer money home imply that Nigerians living abroad no longer need to use other methods to send money home. Furthermore that development is helping to make the country’s foreign exchange basis more diverse, which has long relied on oil exports.
Stronger flows mean things are stable
Cardoso said that the naira is getting stronger because more money is coming in, which makes Nigeria more competitive and gives international investors more confidence. He said that the rise in remittances from the diaspora was part of a bigger plan to balance Nigeria’s foreign exchange revenues.
Nigeria diaspora remittances are further estimated to reach $1 billion
“When we first thought about diaspora flows as a way to mix up our foreign exchange flows, people laughed,” he remarked. “But in the last two months, we’ve made $600 million a month.” We expect to get at least $1 billion from diaspora inflows by next year.
In conclusion, the governor claimed that the flows are “helping to diversify our foreign exchange portfolio” and make Nigeria’s growth more stable.
