Nigeria’s formal remittance market is growing significantly, with Nigerians abroad sending an impressive $3.8 billion home between January and July 2026. According to data from the Central Bank of Nigeria (CBN), this represents a remarkable 50.2% increase compared to the same period in 2025. The surge in remittances indicates a growing preference for formal channels when sending money back to the country.
Several factors have contributed to this increase. Recent foreign exchange reforms and changes to the regulations governing international money transfer operators (IMTOs) have made it easier for Nigerians abroad to send money through regulated financial avenues. These changes aim to encourage the use of formal channels, which are seen as safer and more reliable.
July 2026 was particularly noteworthy, recording approximately $947 million in remittances through formal channels. This figure marks the highest monthly inflow ever recorded through IMTOs, pushing Nigeria to within just $53 million of the CBN’s ambitious target of $1 billion per month.
CBN Governor Olayemi Cardoso set this target nearly two years ago to enhance the flow of diaspora funds into Nigeria through official means.
“When we set a clear ambition to reach $1 billion a month in remittance inflows through formal channels nearly two years ago, some people thought we were dreaming,” Cardoso remarked. “Now, at $947 million in July, we are getting closer to that milestone.”
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The Central Bank of Nigeria (CBN) has reported that recent growth in formal remittance channels is attributed to various reforms aimed at enhancing their competitiveness, transparency, and accessibility. A significant reform has been Nigeria’s transition to a more market-driven foreign exchange system. This change has notably improved the conditions for formal remittance transactions, making it easier for Nigerians abroad to send money home.
Additionally, the CBN has revised its regulatory framework for International Money Transfer Operators (IMTOs) and introduced the Non-Resident Bank Verification Number (NRBVN). This new initiative grants Nigerians living outside the country a more structured identity within the Nigerian banking system, facilitating smoother transactions.
The CBN has also stepped up its collaboration with IMTOs, commercial banks, and the diaspora communities in major remittance corridors. These efforts are aimed not only at increasing the total volume of remittances sent home by Nigerians abroad but also at ensuring that a larger portion of these funds is funnelled through regulated and traceable channels.
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Moreover, the central bank has enhanced the requirements for remittance transactions, mandating that they be routed through designated settlement accounts with authorised dealer banks. This measure provides regulators and financial institutions with greater visibility into the flow of foreign currency entering the country, further contributing to a more reliable and secure remittance landscape.
Remittances are vital for Nigeria’s economy, particularly as the Central Bank of Nigeria (CBN) seeks to improve foreign exchange liquidity. Increasing formal remittance inflows can enhance household spending, investment, and overall external financing.
For recipients, these flows mean more funds are entering the regulated financial system, especially as competition grows among banks and money transfer companies.
The CBN is working to reduce barriers and streamline processes for remittance services, aiming for sustained growth rather than temporary spikes. In the first seven months of this year, Nigeria received $3.8 billion, with July alone accounting for $947 million, the highest monthly amount recorded.
CBN officials stress that their goal is to maintain monthly remittances above $1 billion, with July serving as a significant benchmark for future growth.
