In 2024, Nigeria’s diaspora remittances soared to an impressive $20.93 billion, reflecting an 8.9% increase from the previous year, according to a report released by the Central Bank of Nigeria (CBN).
Remittances are money sent by individuals working abroad to their families or home countries, and are a crucial source of foreign exchange inflows. Also serves as a financial lifeline for many households in developing economies like Nigeria.
Beyond supporting daily needs, these inflows significantly bolster the country’s economy. The CBN’s latest Balance of Payments (BOP) report revealed that diaspora remittances were a key driver behind Nigeria’s $6.83 billion BOP surplus in 2024, a stark contrast to the deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
The report further detailed a robust $17.22 billion surplus in the current and capital account, fueled by a $13.17 billion goods trade surplus. Nigeria also recorded a net acquisition of financial assets amounting to $12.12 billion.
Notably, portfolio investment inflows doubled, surging by 106.5% to $13.35 billion, while foreign currency holdings grew by $5.41 billion. However, foreign direct investment saw a decline, dropping 42.3% to $1.08 billion.
The CBN credited this economic turnaround to macroeconomic reforms, enhanced trade performance, and renewed confidence among investors and the diaspora community.
A significant contributor to the remittance boom was a 43.5% increase in funds channeled through International Money Transfer Operators (IMTOs), which rose from $3.30 billion in 2023 to $4.73 billion in 2024. This growth highlights both stronger diaspora engagement and advancements in Nigeria’s financial infrastructure.
Beyond remittances, official development assistance also rose by 6.2%, reaching $3.37 billion, further strengthening Nigeria’s external financial position. These combined inflows have proven instrumental in stabilizing the nation’s economy, as noted by Mrs. Hakama Sidi-Ali, Acting Director of Corporate Communications at the CBN. “Remittances and international support have been pivotal in achieving the current surplus and fortifying our external reserves,” she stated.
CBN Governor Olayemi Cardoso echoed this sentiment, attributing the improved financial landscape to consistent policy efforts and the bank’s commitment to macroeconomic stability. The positive momentum is evident in Nigeria’s external reserves, which climbed by $6 billion to $40.19 billion by year-end. Additionally, a nearly 80% reduction in reporting errors and omissions signals greater accuracy and reliability in the country’s financial data.
As Nigeria continues to leverage diaspora funds, portfolio investments, and development assistance, the CBN remains optimistic about the nation’s economic outlook. These trends not only reflect the resilience of Nigeria’s diaspora community but also position the country as a key player in the global economy in 2024.
