Diaspora Remittances To Nigeria Soar To $20.93 Billion In 2024, Bolstering Economy.
Nigeria’s economy received a significant boost in 2024 as diaspora remittances reached an impressive $20.93 billion, according to official figures from the Central Bank of Nigeria (CBN). This remarkable sum, representing an 8.9% increase from the previous year, underscores the vital role Nigerians living abroad play in supporting the nation’s financial stability and growth.
The announcement was made by President Bola Tinubu during the National Diaspora Day celebrations in Abuja, organised by the Nigerians in Diaspora Commission (NiDCOM). The event, themed “Optimising Formidable Diaspora Potentials for National Development and Growth,” highlighted the transformative impact of these financial inflows. Tinubu noted that the remittances were four times the value of Nigeria’s Foreign Direct Investment (FDI) for the same period, cementing their status as a cornerstone of the country’s economic resilience.
The $20.93 billion in remittances, which account for approximately 6% of Nigeria’s GDP, have provided a critical buffer for households and the broader economy. These funds have supported essential sectors such as education, healthcare, and housing, while also contributing to foreign exchange reserves. The CBN’s strategic reforms, including the liberalisation of the foreign exchange market and the elimination of caps on exchange rates for international money transfer operators (IMTOs), have been credited with driving this surge. In September 2024 alone, remittances hit $600 million, more than doubling the $250 million recorded earlier in the year.
Governor of the CBN, Olayemi Cardoso, expressed optimism about further growth, revealing plans to double diaspora remittances in the near future. The bank’s initiatives, such as granting 14 new Approvals-in-Principle for IMTOs and establishing a dedicated task force, have fostered competition and transparency in the remittance ecosystem. “These inflows are not just financial; they reflect the deep connection and commitment of our diaspora to Nigeria’s progress,” Cardoso said.
The World Bank’s Migration and Development Brief corroborated Nigeria’s position as a global leader in remittances, noting that the country accounted for 35% of total remittance inflows to sub-Saharan Africa in 2023. Despite a slight dip to $19.5 billion that year due to global economic challenges, the 2024 rebound highlights the resilience of Nigeria’s diaspora community, particularly in major source countries like the United States and the United Kingdom.
Economists and analysts have hailed the increase as a lifeline for Nigeria, which has faced pressures from inflation and currency depreciation. Dr. Adebayo Shonibare, a remittance specialist, attributed the growth to “strategic incentives and regulatory reforms that have restored confidence in official channels.” He added that the funds have cushioned households against external shocks and supported local investments.
Beyond financial contributions, the diaspora’s impact extends to knowledge transfer and innovation. NiDCOM Chairperson, Abike Dabiri-Erewa, praised Nigerians abroad for their achievements in technology, health, and finance, which continue to enhance Nigeria’s global reputation. “These remittances are a testament to the patriotism and resilience of our diaspora,” she said, urging policymakers to create avenues for channelling funds into productive sectors like renewable energy and infrastructure.
As Nigeria looks to 2025, the sustained growth in remittances offers a promising outlook. With ongoing reforms and increasing diaspora engagement, the country is poised to harness these inflows for long-term development, ensuring that the contributions of Nigerians abroad continue to shape a brighter economic future.
