Nigeria recorded a total of N1.95 trillion in direct remittances in 2024, according to data from the Central Bank of Nigeria (CBN) analyzed by BudgIT.
These substantial inflows had a significant impact on the country’s international payments landscape, even as broader economic challenges persisted.
Data revealed that between December 2023 and December 2024, May 2024 saw the highest monthly direct remittance at N355.4 billion, followed by N270.5 billion in June and N230.2 billion in September. Conversely, the lowest monthly figures were N38.4 billion in December 2023 and N39.1 billion in February 2024.
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Despite the inflow, Nigeria’s balance of payments reflects a worrying trend. In 2024, the country recorded $ 5.72 trillion in international repayments, which included $ 994.21 billion in Letters of Credit and $ 4.72 trillion in debt service payments—covering both interest and principal repayments on external loans. Letters of Credit, commonly used in international trade, serve as a financial guarantee from Nigerian banks to foreign sellers.
The significant disparity between inflows and outflows underscores the continued strain on Nigeria’s external financial position. The net effect has exacerbated pressure on the naira, which has seen sharp depreciation due to persistent foreign exchange demand outweighing supply.
Although direct remittances represent a critical inflow, they are insufficient to balance Nigeria’s growing external obligations. On a more optimistic note, total remittance inflows—encompassing all formal channels—rose to $20.93 billion in 2024, an 8.9% year-on-year increase. This marks a sharp recovery from the deficits of $3.34 billion in 2023 and $3.32 billion in 2022, making 2024 the best remittance year since 2019, when inflows stood at $23.80 billion.
According to the World Bank, Nigeria’s remittance peak over the past decade was $24.31 billion in 2018, with the lowest recorded in 2020 at $17.21 billion. The 2024 rebound was attributed to macroeconomic reforms, improved trade dynamics, and growing investor confidence. The CBN noted that IMTO inflows alone surged by 43.5% to $4.73 billion, up from $3.30 billion in 2023.
Under the current CBN Governor, Olayemi Cardoso, who assumed office in September 2023, when the nation was grappling with forex scarcity, the apex bank has focused on ensuring that International Money Transfer Operators (IMTOs), operating in the country, are allowed to play a role that would lead to a significant increase in remittance flows.
Fast forward to April 2025, the CBN broke a new record under Cardoso with Dollar inflows. The apex bank revealed that remittance flows into the Nigerian economy rose by nine per cent to $20.98 billion, the highest level in five years under the current leadership of Olayemi Cardoso.
Cardoso noted that the improvement in remittances was due to economic reforms, stating that there was a remarkable increase in monthly inflows from $250 million in 2024 to $600 million by September of that year. He revealed that more Nigerians abroad are choosing official and formal channels to remit funds due to CBN policies that have reformed remittance platforms.
The CBN governor further stressed that the recent stabilization of the FX market and growth in key sectors are indicators of economic recovery. He reiterated that increased remittances and a more stable macroeconomic climate would support economic progress.
Nigeria’s status as a top remittance destination remains firm, reflecting the strength and engagement of its diaspora. However, without broader economic reforms and diversified revenue sources, the country’s reliance on remittance inflows alone will not be sufficient to stabilize its external financial position.
At the continental level, Africa received over $95 billion in remittances in 2024, with Nigeria, Egypt, and Morocco ranking as the top beneficiaries. The Africa Finance Corporation (AFC), in its State of Africa’s Infrastructure Report 2025, described the surge in remittances as a pivotal shift—strengthening formal financial ties between African economies and their diasporas and signaling a gradual reversal of long-standing capital flight trends.