Nigerians living abroad in the first four months of this year sent $328.76 million back home in direct remittances, even as the country spent $2.01 billion on external debt service between January and April 2025.
Data from the Central Bank of Nigeria (CBN) showed that, $540.67 million was spent to service the country’s external debt obligation in January, moderating to $276.73 million in February, before increasing in March to $632.36 million, the highest so far this year. In April a total of $557.79 million was spent on servicing debt.
In the first month of the year, Nigerians living abroad had sent $54.44 million, as inflow jumped to $125.59 million in February, the highest monthly inflow so far in 2025 representing more than a 130 per cent increase over the previous month.
Inflow however slowed in March to $110.98 million, and much further to $37.75 million in April, the lowest figure year-to-date. Amidst the tax on remittance outflow introduced by the Donald Trump led government of the United States of America, some analysts opine that the tax may affect the remittance inflow into Nigeria.
In 2024, total remittance inflows to Nigeria rose to $20.98 billion, a nine per cent increase and the highest level in five years. Remittances through formal channels increased by 43 per cent rising from $3.3 billion to $4.73 billion. The increase according to Cardoso was due to ongoing reforms, including the adoption of the “willing buyer, willing seller” forex regime, licensing of more International Money Transfer Operators (IMTOS, and currency convergence.
The CBN has recently taken moves to further drive remittance inflows into the country through the Nigerian banking system. CBN governor, Olayemi Cardoso had noted that the launch of the non resident Bank Verification Number (NRBVN), is part of a broader push to hit a bold $1 billion monthly remittance target and reduce the high cost of sending money home for Nigerians living abroad.
With the Non-Resident Ordinary Account (NROA) and the Non-Resident Nigerian Investment Account (NRNIA), which are designed to channel diaspora funds into formal avenues such as capital markets, mortgages, insurance, and pension, Cardoso stated that “we must move beyond viewing remittances solely as consumption support. These flows can be transformative if properly harnessed.”
