In a major boost to Nigeria’s economy, personal remittances from Nigerians living abroad surged to $20.93 billion in 2024, according to data released by the Central Bank of Nigeria (CBN). This figure reflects the growing importance of diaspora contributions to the country’s financial stability and foreign exchange inflows, especially at a time when oil revenues remain volatile.

🌍 What Are Personal Remittances?

Personal remittances are funds sent by individuals to support family or friends in their home country. For Nigeria, these remittances typically come from citizens living in the United States, United Kingdom, Canada, Saudi Arabia, United Arab Emirates, and other parts of Europe and Africa. They are often used for:

• Family support (education, rent, food, healthcare)

• Small business investments

• Property acquisition

• Social projects (community donations, religious centers)

📈 A Year of Record Inflows

The CBN’s report shows a year-on-year increase of more than 8% from the $19.4 billion recorded in 2023. This growth has been attributed to:

• A larger Nigerian diaspora population

• Easier digital remittance channels (like Sendwave, WorldRemit, and Paystack Remit)

• Improved compliance with CBN’s Naira payout policy, which allows beneficiaries to receive funds in either USD or Naira

• Economic instability in Nigeria, driving more dependency on foreign support

“Personal remittances remain one of the most stable and significant sources of foreign inflow for Nigeria, helping to bridge the gap in foreign exchange supply,” said Dr. Adedayo Ojo, an economist at Lagos Business School.

🏦 Economic Impact of Remittances

In 2024, remittance inflows surpassed Nigeria’s foreign direct investment (FDI) and came close to matching oil revenue in certain quarters. This underlines the pivotal role of the Nigerian diaspora in:

• Stabilizing the exchange rate

• Supporting household consumption

• Financing real estate and infrastructure projects

• Sustaining foreign reserves

Remittances now account for nearly 4.5% of Nigeria’s GDP, according to the World Bank.

💰 How Remittances Support the Naira

As Nigeria grapples with exchange rate volatility and dollar scarcity, personal remittances serve as an unofficial shock absorber. The inflow of hard currency helps reduce pressure on the CBN and keeps the Naira relatively stable in the parallel market.

However, some analysts warn that Nigeria cannot rely solely on remittances for economic survival.

“Remittances are like a crutch. They help us walk, but they shouldn’t replace a strong economy,” noted Bismarck Rewane, CEO of Financial Derivatives Company, during a recent interview with Channels TV.

🔮 What’s Next for Nigeria?

With over 17 million Nigerians living abroad and global digital transfer systems becoming more seamless, remittances are expected to grow even further in 2025. But experts urge the government to:

• Provide incentives for diaspora investment in agriculture, tech, and real estate

• Strengthen financial regulations to prevent fraud

• Develop trust-building platforms for transparent use of diaspora funds in national projects

📌 Conclusion

Nigeria’s $20.93 billion in personal remittance inflow is not just a statistic—it’s a testament to the resilience, generosity, and patriotism of Nigerians in the diaspora. As the country works toward economic transformation, these contributions remain a vital tool for survival and sustainable growth.

📚 References

• Central Bank of Nigeria, 2024 Remittance Report – cbn.gov.ng

• World Bank Migration and Development Brief, 2024

• Channels TV – Interview with Bismarck Rewane (March 2024)

• Lagos Business School Economic Bulletin, Q4 2024

Last Updated on April 10, 2025 by kingstar