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Nigeria Receives N1.95 Trillion in Direct Remittances in 2024 – CBN Report

By
Ojukwu Emmanuel
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0

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.

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.

Tinubu Seeks Extra $347m Loan for Lagos-Calabar Coastal Highway as Senate Approves $25bn Borrowing Plan

By
Samuel Nwite
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0

President Bola Tinubu has written to the House of Representatives requesting approval for an additional $347 million external loan to fund the Lagos-Calabar Coastal Highway, citing an upward revision in the financial requirements of the controversial project.

The request forms part of the federal government’s revised borrowing plan for the 2025–2026 fiscal period.

In the letter, Tinubu explained that the additional funds were needed to meet the adjusted scope and design of the project, a flagship infrastructure plan aimed at boosting inter-state connectivity along Nigeria’s southern corridor. The president stressed the urgency of the funding, describing the project as “critical to Nigeria’s economic competitiveness” and a strategic priority for the administration’s Renewed Hope Agenda.

The House is expected to deliberate on the fresh loan request in the coming weeks, while the Senate had, on Tuesday, already given its nod to an earlier tranche of Tinubu’s expansive borrowing plan—approving a combined external loan package of $21.5 billion, €2.2 billion, and 15 billion Japanese Yen, alongside a €65 million grant.

In addition to the foreign loans, the Senate also approved a domestic bond issuance of N757.98 billion aimed at clearing outstanding liabilities under the Contributory Pension Scheme (CPS), some of which date back to December 2023. The move was widely seen as a bid to provide relief to thousands of retirees impacted by chronic delays in entitlement payments.

The Senate’s approval forms part of the 2025–2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), documents that lay out the federal government’s fiscal direction and economic priorities over the next two years.

Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts, who presented the committee’s report, disclosed that most of the proposed loans were concessional in nature—offered at low interest rates with extended repayment terms. These, he explained, are intended to finance critical sectors such as power, transportation, education, health, agriculture, and water resources without placing excessive strain on Nigeria’s fragile public finances.

In his communication to the National Assembly, President Tinubu defended the borrowing plan as necessary to address the country’s “massive infrastructure deficit” and to sustain key economic programmes at a time when government revenue has been under immense pressure, particularly since the removal of fuel subsidies.

“In light of the significant infrastructure deficit in the country and the paucity of financial resources needed to address this gap amid declining domestic demand, it has become essential to pursue prudent economic borrowing to close the financial shortfall,” Tinubu stated.

One of the most notable provisions in the Senate-approved plan is the proposed $2 billion Foreign Currency Denominated Issuance Programme in the domestic debt market. The programme, enabled by Presidential Executive Order No. 16 of 2023, is designed to raise foreign currency from domestic sources—such as diaspora remittances, foreign businesses, and private sector players operating in Nigeria—rather than international lenders.

According to the Senate, this innovative measure is aimed at deepening the local capital market, easing pressure on Nigeria’s foreign reserves, and attracting new investors. Proceeds from the programme will be ring-fenced for investment in strategic sectors including energy, digital infrastructure, and transport.

“The initiative provides an alternative to external borrowing, reduces pressure on foreign reserves, and allows investors to earn returns on their dollar holdings while contributing to national development,” the Senate committee said.

Equally pivotal is the Senate’s approval of the N757.98 billion bond issuance to settle backlogs in pension contributions under the CPS. Nigeria’s pension system has faced a crisis in recent years, with the federal government repeatedly defaulting on its obligations due to revenue shortfalls. The prolonged delays have left many retirees in financial distress, unable to meet basic needs or access healthcare.

According to Tinubu’s letter to the Senate, the Federal Executive Council (FEC) had already given prior approval for the pension bond programme in February 2025. The president said the bonds would “cushion the hardship of retirees, restore trust in the pension system, and stimulate liquidity in the domestic market.”

Lawmakers who supported the overall borrowing plan acknowledged the country’s growing public debt profile but argued that the long-term benefits—including job creation, improved infrastructure, and expanded access to health and education—outweighed the immediate costs. They insisted that the loans, grants, and bond issuance represented a necessary and strategic response to the nation’s economic realities.

The Senate said the borrowing programme is a fiscal pivot designed to put Nigeria on a more sustainable growth trajectory. It described the approval as a vital step toward stabilizing the economy, modernizing critical infrastructure, and addressing historic pension arrears that have long eroded public trust in the system.

As attention now turns to the House of Representatives for its review of the additional $347 million sought for the Lagos-Calabar Coastal Highway, Tinubu’s administration is betting heavily on borrowed funds to drive its development agenda. However, the mounting debt burden continues to spark concern among analysts and civil society groups, who warn that without corresponding increases in revenue, the borrowing spree will exacerbate Nigeria’s fiscal vulnerability.

Google’s AI Overview Hits 2 Billion Users Globally as Alphabet Doubles Down on AI Investments

By
Samuel Nwite
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0

Alphabet CEO Sundar Pichai announced on Tuesday that Google’s artificial intelligence services are reaching unprecedented global usage levels, with AI Overviews — the company’s AI-powered search summaries — now serving 2 billion monthly users across more than 200 countries and territories.

The announcement came during Alphabet’s Q2 2025 earnings call, where Pichai outlined the company’s ongoing momentum in scaling consumer-facing AI products.

The new milestone marks a significant jump from the 1.5 billion monthly users recorded in May, highlighting how quickly AI Overviews has embedded itself into Google’s core search experience. The feature, which presents summarized answers to queries using generative AI, has become central to Google’s strategy to transform search from a traditional list of blue links to a dynamic, conversational interface.

“We continue to see strong growth and engagement,” Pichai said, adding that daily requests for Gemini — Google’s flagship generative AI model — have grown over 50% since Q1.

The Gemini app itself now boasts 450 million monthly active users, while AI Mode, a conversational layer embedded into Google Search, has surpassed 100 million monthly users. AI Mode was initially launched in the U.S. but has since expanded into India and is being rolled out in more regions.

In a move aimed at deepening user interaction, Google plans to upgrade AI Mode with new features such as Deep Search, which allows for more comprehensive research capabilities, and personalized responses based on user preferences and behavior — further tightening the integration between users and AI-generated content.

Beyond consumer tools, Google is also scaling its AI ecosystem for developers. The company reported that over 9 million developers have built applications using Gemini models, and interest continues to rise. Meanwhile, Google’s text-to-video tool, Veo 3, has been used to create more than 70 million videos since May. Within Google Workspace, Google Vids, powered by Veo, now has nearly 1 million monthly users.

AI-driven productivity tools are also seeing growing adoption. Over 50 million users have used AI-powered note-taking in Google Meet, which includes features like real-time summarization, follow-up task suggestions, and automated action items — all driven by Google’s in-house AI models.

To underscore the scale of its generative AI systems, Alphabet revealed that its infrastructure is now processing 980 trillion tokens per month — more than double the 480 trillion tokens handled in May. This metric illustrates the explosive growth in AI workload and the heavy computing demand these services now place on Google’s infrastructure.

Despite the remarkable growth, Alphabet’s Q2 2025 financial results presented a more complicated picture for investors. The company reported revenue of $84.7 billion, up 14% year-over-year, and net income of $23.7 billion. However, shares dipped more than 6% after Pichai confirmed that capital expenditures reached $11 billion for the quarter and would rise even further in the second half of the year to accommodate AI infrastructure expansion.

“We are seeing significant demand for our comprehensive AI product portfolio,” Pichai said. “This is all possible because of the long-term investments we’ve made in our differentiated, full-stack approach to AI.”

While investors remain cautious about the cost implications, the company’s AI bet is clearly gaining traction across both consumer and enterprise segments. From Search to Workspace, Gemini to Veo, Google is staking its future on building and scaling AI tools — and the numbers now prove that users are coming along for the ride.

MARA’s Aggressive Acquisition of Bitcoin Signals A Long-Term Bet on Bitcoin’s Value Appreciation

By
Paul Ugbede Godwin
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0

MARA Holdings, the world’s largest publicly traded Bitcoin mining company, announced plans to raise $850 million through zero-coupon convertible senior notes due in 2032 to expand its Bitcoin treasury, which currently holds 50,000 BTC, valued at approximately $5.9 billion. The offering includes an option for initial purchasers to buy an additional $150 million, potentially increasing the total to $1 billion.

Up to $50 million of the proceeds will be used to repurchase existing 1% convertible notes due in 2026, with the remainder allocated for Bitcoin purchases, capped call transactions, and general corporate purposes. This move follows MARA’s strategy of combining mining with strategic Bitcoin acquisitions, a response to profitability pressures from the April 2024 Bitcoin halving, which reduced mining rewards. Despite a Q1 2025 net loss of $533 million, MARA reported a 30% revenue increase to $214 million. The company’s stock dipped 5.79% after the announcement, though it has seen a 38% surge over the past 30 days.

MARA’s aggressive acquisition of Bitcoin (aiming to increase its 50,000 BTC holdings) signals a long-term bet on Bitcoin’s value appreciation. This “HODL” strategy, where mined and purchased Bitcoin is held rather than sold, positions MARA as a quasi-Bitcoin ETF, appealing to investors seeking crypto exposure without direct ownership. By using debt to fund Bitcoin purchases, MARA leverages low-interest convertible notes (0% coupon) to capitalize on potential Bitcoin price surges, potentially yielding high returns if Bitcoin’s value rises significantly by 2032.

The April 2024 Bitcoin halving reduced block rewards, squeezing miner profitability. MARA’s pivot to Bitcoin accumulation diversifies its revenue model beyond mining, mitigating the impact of lower rewards and high operational costs (e.g., energy and hardware). This strategy could set a precedent for other miners, encouraging a shift from pure mining to hybrid models combining mining with strategic crypto investments.

MARA’s move reinforces Bitcoin’s narrative as a store of value, potentially boosting market sentiment. Large corporate purchases often drive bullish price action, as seen in past instances with companies like MicroStrategy. However, the 5.79% stock dip post-announcement suggests investor skepticism about the risks of heavy Bitcoin exposure, especially given MARA’s Q1 2025 net loss of $533 million despite revenue growth.

The use of convertible notes and capped call transactions reflects sophisticated financial strategies to manage dilution and share price volatility. This could attract institutional investors but also increases financial complexity and risk if Bitcoin prices stagnate or decline. Some shareholders may view MARA’s Bitcoin-heavy strategy as speculative, preferring stable cash flows from mining operations. The stock’s post-announcement dip suggests concerns about over-leveraging or exposure to Bitcoin’s volatility.

Bitcoin maximalists and crypto enthusiasts likely support MARA’s move, seeing it as a bold endorsement of Bitcoin’s long-term value. This aligns with the ethos of holding Bitcoin as a hedge against inflation or fiat devaluation. Many traditional companies remain wary of cryptocurrencies due to regulatory uncertainty, market volatility, and accounting complexities (e.g., Bitcoin’s treatment as an intangible asset requiring impairment tests).

Firms like MARA and MicroStrategy embrace Bitcoin as a core treasury asset, prioritizing long-term upside over short-term stability. This divide highlights differing risk appetites and views on Bitcoin’s role in corporate finance. Smaller or less capitalized miners may stick to traditional mining, focusing on operational efficiency and cost-cutting to survive post-halving economics.

Larger miners like MARA, with access to capital markets, can afford to diversify into Bitcoin holding, creating a competitive gap. This could lead to industry consolidation, as smaller miners struggle to compete. MARA’s move may attract regulatory scrutiny, as large corporate Bitcoin holdings could raise questions about financial stability or market manipulation. Conversely, it could normalize corporate crypto adoption, encouraging other firms to follow suit.

Public perception is split: crypto advocates see it as validation, while critics view it as a risky bet that could destabilize MARA if Bitcoin underperforms. MARA’s purchases could reduce Bitcoin’s circulating supply, potentially driving prices higher, especially if other corporations follow. However, a bearish market could strain MARA’s balance sheet, given its debt-financed strategy.

MARA’s $850 million raise to buy Bitcoin is a high-stakes move that strengthens its position as a Bitcoin bull but widens the gap between crypto-optimistic and risk-averse stakeholders. It reflects a broader tension in how businesses navigate the evolving role of cryptocurrencies in finance.

Goldman Sachs and BNY Mellon Are Collaborating On Launching A Tokenized Money Market Funds

By
Paul Ugbede Godwin
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0

Goldman Sachs and Bank of New York Mellon (BNY) announced a collaborative initiative to launch tokenized money market funds (MMFs) for institutional investors, marking a significant step in integrating blockchain technology with traditional finance. This platform allows BNY clients, such as hedge funds, pension funds, and corporations, to invest in tokenized MMF share classes, with ownership recorded on Goldman Sachs’ private blockchain, GS DAP.

Major asset managers, including BlackRock, Fidelity Investments, Federated Hermes, and the asset management arms of Goldman Sachs and BNY, are participating in the initial rollout. Unlike stablecoins, which are primarily used for payments, tokenized MMFs offer yield, making them attractive for institutional cash management. The initiative aims to modernize the $7.1 trillion MMF industry by enabling real-time trading, faster settlements, and 24/7 liquidity, addressing the limitations of traditional systems where redemptions can take up to two days and are restricted to market hours.

Tokenized funds can also be transferred between financial intermediaries without needing to liquidate into fiat currency, potentially streamlining collateral use for trades and margin requirements. The project builds on Goldman Sachs’ Digital Assets Platform and BNY’s LiquidityDirect platform, with BNY maintaining traditional records while mirroring ownership as digital tokens on the blockchain. This dual-ledger approach ensures compliance with existing regulations while exploring new efficiencies.

The initiative follows the recent passage of the GENIUS Act, which supports U.S.-regulated stablecoins, signaling growing institutional and regulatory momentum for digital assets. Other financial giants like JPMorgan, Citigroup, and UBS have also explored tokenization, reflecting a broader trend toward integrating blockchain into mainstream finance. Tokenized MMFs enable 24/7 trading and near-instantaneous settlement, compared to the traditional one-to-two-day redemption process.

This improves liquidity for institutional investors like hedge funds and pension funds, allowing faster access to cash for operational or investment needs. The ability to transfer tokenized MMF shares without liquidating into fiat currency streamlines collateral management for trades and margin requirements, reducing transaction costs and operational friction.

The collaboration between major players like Goldman Sachs, BNY Mellon, BlackRock, and Fidelity signals growing institutional confidence in blockchain technology. Using Goldman’s private blockchain (GS DAP) for tokenized MMFs legitimizes distributed ledger technology in traditional finance. This move could accelerate broader adoption of blockchain for other asset classes, such as bonds, equities, or real estate, as financial institutions see proven use cases.

Tokenized MMFs offer yield, unlike stablecoins, making them a compelling alternative for institutional cash management. This could attract significant capital from investors seeking low-risk, yield-generating assets in a digital format. Asset managers participating in the platform (e.g., BlackRock, Fidelity) gain a first-mover advantage in the tokenized asset space, potentially capturing market share from competitors slower to adopt blockchain.

The dual-ledger approach (traditional records alongside blockchain tokens) ensures compliance with existing regulations while testing blockchain’s potential. This could pave the way for regulatory frameworks that accommodate tokenized assets more broadly. The GENIUS Act’s recent passage, supporting regulated stablecoins, suggests a favorable regulatory environment for tokenized financial products, potentially encouraging further innovation.

Tokenized MMFs could challenge traditional payment systems by enabling direct, peer-to-peer transfers of value between financial institutions. This reduces reliance on intermediaries and legacy infrastructure, potentially lowering costs. The $7.1 trillion MMF industry could see a shift toward tokenized solutions, prompting competitors to develop similar offerings or risk obsolescence.

Private blockchains, like GS DAP, raise questions about interoperability with public blockchains or other private systems, which could limit scalability or create walled gardens. Cybersecurity risks associated with blockchain technology, such as hacks or smart contract vulnerabilities, remain a concern, requiring robust safeguards.

Regulatory uncertainty in some jurisdictions could slow global adoption, especially if tax implications or cross-border rules for tokenized assets remain unclear. By modernizing cash management, tokenized MMFs could improve capital efficiency for institutional investors, potentially freeing up capital for productive investments and boosting economic activity.

Thhe launch of tokenized MMFs represents a pivotal step toward blending traditional finance with blockchain technology, offering improved efficiency, liquidity, and yield opportunities for institutional investors. However, its success will depend on overcoming technical, regulatory, and interoperability challenges while maintaining investor trust.

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