A recent report revealed that Nigerians living abroad sent a total of $328.76 million in direct remittances back home between January and April 2025.
According to data from the Central Bank of Nigeria (CBN), inflow began at $54.44 million in January, then surged to $125.59 million in February, representing a more than 130 percent increase and the highest monthly inflow recorded this year.
However, the upward trend slowed in March, with remittances dropping to $110.98 million, and further declined in April to $37.75 million, the lowest monthly figure year-to-date.
With the U.S. proposing a 5% remittance tax, analysts suggest that it may likely impact inflows for the next month. Recall that earlier this month, the Trump administration proposed a bill titled “The One Big Beautiful Bill”, seeking to place a 5% excise tax on all International money transfers sent by non-citizens from the U.S. to other countries. For the millions of Nigerian migrants who send money home to support families or invest in their country of origin, this could mean billions of dollars in new costs.
The United States is the largest source of remittances to Nigeria. According to the World Bank and other sources, the U.S. consistently leads as the top remittance-sending country globally, with a significant portion directed to Nigeria. In 2023, Nigeria received about $19.5 billion in remittances, with approximately 60% of these flows coming from the U.S. and the U.K. combined, and the U.S. contributing the largest share due to its sizable Nigerian diaspora, estimated at over 5 million people.
It is however worth noting that the steady increase of remittances to Nigeria is driven by the increasing adoption of mobile money payment systems. Over the past five years, Nigeria has received over $99 billion in diaspora remittances, underscoring the significant role of the Nigerian diaspora in the country’s economic landscape.
To enhance efficiency and security within the payments ecosystem, countries like Nigeria and South Africa have strengthened industry regulations to curb fraud and enhance cybersecurity. The positive impact of these measures extends beyond traditional financial services, influencing the adoption of virtual assets and increasing regulatory attention to
cybersecurity development.
In 2024, Nigeria recorded total remittance inflows of $20.98 billion, the highest level in five years and a 9 percent year-on-year increase. Formal remittance channels saw a significant 43 percent growth, rising from $3.3 billion to $4.73 billion. This growth, according to CBN Governor Olayemi Cardoso, was driven by reforms such as the “willing buyer, willing seller” forex regime, increased licensing of International Money Transfer Operators (IMTOs), and currency convergence.
Also, Cardoso attributed the improvement in remittances to recent economic reforms, noting a remarkable rise in monthly remittance inflows from $250 million earlier in 2024 to $600 million by September 2024. He explained that more Nigerians in the diaspora are choosing formal channels to remit funds, thanks to new CBN policies that have made official remittance platforms more appealing.
To further boost inflows, the CBN has rolled out several initiatives, including the introduction of the Non-Resident Bank Verification Number (NRBVN), aimed at achieving a bold target of $1 billion in monthly remittances. The Bank is also promoting the use of the Non-Resident Ordinary Account (NROA) and the Non-Resident Nigerian Investment Account (NRNIA), which channel diaspora funds into productive sectors such as capital markets, real estate, insurance, and pensions.
Notably, Governor Cardoso emphasized the need to move beyond viewing remittances merely as a source of consumption support. “These flows can be transformative if properly harnessed,” he said.
