Diaspora remittances jump 61% in 1 year — CBN

The Central Bank of Nigeria (CBN) has announced that diaspora remittances processed through International Money Transfer Operators rose to $4.22 billion between January and October 2024.

This figure almost doubles the $2.62 billion recorded in the corresponding period in 2023.

Moreover, the increase in remittances represents a growth of approximately 61.1 percent in one year.

Mr. Olayemi Cardoso, Governor of the CBN, revealed this during an interactive session with the Senate Committee on Banking, Insurance, and Other Financial Institutions on Wednesday at the National Assembly.

While providing a monthly update, Cardoso noted that remittances rose from $336.61 million in September 2024 to $402.38 million in October 2024.

The apex bank chief attributed the growth to enhanced efficiency in the remittance process, the positive impact of President Tinubu’s policies, and the growing confidence of Nigerians in diaspora to contribute to national development.

Also, Mr. Cardoso projected that remittance inflows would continue to go up by the end of the year, given the current trend.

However, according to the World Bank, the Nigerian diaspora remits between $20 billion and $25 billion annually, though these funds are not typically channelled towards private equity investments.

The global financial institution stressed that remittances are a vital source of household income for Low- and Middle-Income Countries (LMICs).

They play a key role in alleviating poverty, improving nutrition, and are linked to better outcomes such as higher birth weights and increased school enrolment rates among disadvantaged households.