Nigerian diaspora remittances grow to $600m a month according to recent CBN data

NIGERIAN diasporans have significantly increased the amount they remit back into the country with the monthly total now averaging about $600m compared with the previous average of about $200m a month.

Revealing these shocking statistics at the Delta State–Brazil Business and Investment Roundtable in São Paulo, Brazil, Olayemi Cardoso, the Central Bank of Nigeria (CBN) governor, said that Nigerians in the diaspora were now more confident in foreign exchange remittance channels, which is part of the reason for the surge in inflow. He added that as a result of the CBN's policies, Nigeria's exchange rate is becoming more competitive.

According to Mr Cardoso, critics laughed at the CBN when it began rolling out reforms to ensure that diaspora inflows became a potential source of diversifying Nigeria’s foreign exchange inflows. He added that this new policy is now starting to yield dividends, which is benefitting the economy.

Mr Cardoiso said: “When we started looking at diaspora flows as a potential source of diversifying our foreign exchange flows, people laughed and we found that we started off at about $200m every month. In the last two months, the last count, we had reached $600m per month and by next year, we anticipate we will be getting at least $1bn from our diaspora folks at home.”

Historically, Nigeria has always been among the top five countries in the world when it comes to remittances behind India, Mexico, Egypt and the Philippines. However, all these economies suffered drops as a result of the Coronavirus pandemic but now, inflows appears to be soaring again.

Yesterday, the Nigerian naira appreciated against the dollar on to close at N1,535.47 amid a sustained rise in external reserves, which stood at $41.24bn, according to the CBN.  Nigeria's foreign reserves, however, are very much dependent on global crude oil prices, as petroleum product receipts account for 90% of federal government revenue.