The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has projected that diaspora remittances will rise to $1 billion per month by the end of 2026, driven by ongoing economic reforms and improved confidence in Nigeria’s financial system. Speaking at the 14th Annual BusinessDay CEO Forum in Lagos on Thursday, Cardoso highlighted the significant progress made in stabilizing the foreign exchange market and boosting investor trust. The forum, themed “From Stability to Shared Prosperity,” brought together business leaders, policymakers, and financial experts to discuss Nigeria’s economic trajectory.
Cardoso emphasized that key reforms, including the unification of exchange rates, have eliminated distortions and enhanced transparency in the forex market. He noted that replacing multiple exchange rate windows with a market-driven system has led to improved liquidity and stronger reserves. Nigeria’s net external reserves have surged from about $3 billion at the start of the reforms to over $40 billion currently, with gross reserves reaching approximately $52 billion—equivalent to about 10 months of import cover. These reserves are designed to protect the economy from external shocks and market volatility, not for routine daily interventions.
Diaspora remittances have emerged as a major contributor to this growth, with inflows doubling within a year of policy adjustments. The CBN targeted remittances to diversify reserve sources beyond oil revenues, engaging Nigerians abroad, banks, and international partners to remove barriers to official fund transfers. By implementing a policy of free entry and exit for foreign exchange, the apex bank has made it easier for funds to flow into and out of the country. Remittances have already climbed to over $600 million in the latest reporting period, and if current trends continue, annual inflows could reach $8 billion.
Cardoso also pointed to the restoration of international functionality for naira-denominated payment cards, which has improved convenience for Nigerians traveling or making payments abroad. On bank recapitalization, he revealed that the exercise attracted between N4 trillion and N5 trillion in fresh capital, strengthening banks’ resilience and lending capacity. Lower inflation and interest rates are expected to support increased credit to businesses and small enterprises, though he urged banks to maintain prudent risk management.
He called on domestic investors to seize the moment, noting that international investors are increasingly showing interest in Nigeria. “The time to invest is now because stability has returned and opportunities are expanding,” Cardoso said. The Monetary Policy Committee, he added, remains data-driven and focused on long-term economic interests, while remaining vigilant to global risks such as the recent U.S.-Iran conflict. He stressed that difficult reforms were necessary to restore trust and secure Nigeria’s future, laying the foundation for shared prosperity.
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