CBN targets $1bn monthly diaspora remittances by end of 2026, Cardoso says

Central Bank of Nigeria Governor Yemi Cardoso has projected that diaspora remittances will hit $1 billion every month before the end of 2026. He spoke on Thursday, July 16, at the 14th Annual BusinessDay CEO Forum in Lagos, under the theme 'From Stability to Shared Prosperity'.

Monthly inflows from Nigerians abroad already exceed $600 million following policy reforms that doubled remittances within a year. Cardoso said the CBN had set its sights on substantially higher figures through a package of reforms encouraging the use of official remittance corridors.

Reforms driving the increase

Cardoso revealed that the central bank held consultations with diaspora communities, commercial banks and international partners to map out friction points discouraging formal transfers into Nigeria. The outcome was a set of policy changes that he described as offering 'free entry and free exit' for foreign exchange, making it easier for funds to move in and out of the country through regulated channels.

These measures had already doubled diaspora remittances within a year and exceeded what the bank originally anticipated. Cardoso projected that annual inflows could approach $8 billion if the current trajectory holds, crediting growing confidence in Nigeria's financial system and foreign exchange market as key drivers.

External reserves climb sharply

Cardoso also highlighted broader improvements in Nigeria's foreign exchange position since the reform programme began. He identified the unification of the exchange rate system as among the most consequential steps the CBN has taken, arguing that eliminating multiple rate windows reduced distortions and made the market more transparent to investors.

Nigeria's net external reserves have grown from approximately $3 billion at the outset of the reforms to more than $40 billion. Gross external reserves now stand at roughly $52 billion, a level he said equates to about 10 months of import cover. Cardoso was clear that the reserve build-up is designed to shield the economy from external shocks and guard against sharp exchange rate swings, rather than to fund routine interventions in the currency market.

Earlier, CBN data showed the country's foreign reserves increased to $50.96 billion as of June 17, 2026, from $37.74 billion recorded in the same period last year, an increase of $13.22 billion or 35.03%. That level is the highest in over 15 years since 2009, bolstering the CBN's capacity to fulfil its international payment obligations and support the naira.

What this means for the naira and Nigerian businesses

Sustained growth in diaspora remittances strengthens Nigeria's foreign exchange reserves and reduces pressure on the naira. For businesses, more dollars flowing through official channels means greater liquidity in the forex market, which could ease access to foreign currency for imports and other transactions. If the CBN hits its $1 billion monthly target, it would mark a significant shift away from oil dependency and provide a more stable foundation for the economy.