Nigeria's diaspora remittances hit $23B, outpacing unstable oil revenues
Nigeria's economy is finding unexpected support from its diaspora. With oil revenues proving unreliable, money sent home by Nigerians abroad has become a key stabiliser. In 2025 alone, these remittances hit a record US $23 billion—the highest in years.
For decades, Nigeria relied heavily on oil sales to fill its foreign reserves. But geopolitical tensions, shifting OPEC+ production rules, and unstable global demand have made these earnings unpredictable. Meanwhile, remittances from Nigerians living abroad have grown steadily, offering a more dependable source of foreign currency.
In 2023, the country received nearly US $19.5 billion in remittances—about 35% of all such inflows to sub-Saharan Africa that year. By 2025, that figure had climbed to US $23 billion. The bulk of these funds comes from just three countries: the United States, the United Kingdom, and Canada, which together account for over 70% of the total. The U.S. remains the largest contributor, supplying roughly 35-40% of remittances since 2023, while the UAE's share has risen due to increased Nigerian migration and stricter transfer regulations.
Under Governor Yemi Cardoso, the Central Bank of Nigeria (CBN) has introduced reforms to improve transparency in remittance flows. These changes have reduced reliance on informal channels, ensuring more dollars enter the official system. As a result, Nigeria's external reserves reached $49 billion by February 2026—boosted by both remittances and stronger oil receipts.
The shift marks a turning point. Where oil once dominated foreign exchange earnings, remittances now provide a steadier, more predictable income stream. The CBN's policies have also made it easier to track these funds, cutting down on unregulated dollar movements.
Nigeria's foreign reserves now stand at $49 billion, the highest in recent years. The growth reflects both rising remittances and the impact of CBN reforms under Governor Cardoso. With oil revenues still vulnerable to global shocks, the money sent home by Nigerians abroad has become a critical pillar of economic stability.
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