 has ecorded diaspora remittance of $950m in July 2026 as part of efforts to boost foreign inflows.){kind=link}
CBN Reports $950m Diaspora Remittances in One Month
The Central Bank of Nigeria (CBN) has revealed that it recorded diaspora remittance of $950 million in July 2026 as part of efforts to boost foreign inflows into the country.
The apex bank has set a monthly remittance target of $1 billion in the coming months.
Speaking at a workshop for financial correspondents, CBN deputy governor in charge of corporate services, Dr. Muhammad Sani Abdullahi said the foreign exchange market needed clearer prices and more reliable trading arrangements, hence the need for reforms.
“The first step in the foreign exchange market came in June 2023, when the Bank consolidated the existing windows and moved towards a willing-buyer, willing-seller framework.
“We subsequently removed the restrictions that had kept 43 categories of imports from the official market and reviewed the outstanding forward claims. The claims found to be valid were settled, addressing a major source of uncertainty for businesses and investors,” he said.
He lamented the gap in foreign exchange market which had taken a toll on the economy with very few individuals at the benefitting end.
“By 2023, Nigeria’s foreign exchange market was heavily administered and deeply fragmented. Multiple windows were operating right alongside a massive parallel market, which made it incredibly difficult for businesses to know which rate would apply to them or when foreign exchange would even be available.
“The gap between the official and parallel rates averaged over 60% in 2022 and exceeded 100% at points late in the year. Just to put that into perspective, the World Bank estimated that the implicit subsidy created by this exchange rate setup cost us about 3% of our GDP in 2022,” Abdullahi explained.
Against that backdrop, he said the bank worked to make the market more transparent and dependable.
“The Bank strengthened trading and reporting rules, introduced the Electronic Foreign Exchange Matching System for interbank transactions, and established the Nigerian FX Code to set clearer standards of conduct.
“At the same time, we tightened monetary policy, improved liquidity management and began winding down development finance interventions. A better foreign exchange market could not be sustained if excess liquidity continued to put pressure on it.
“Three years on, the foreign exchange market is showing greater stability. The average gap between official and parallel rates fell from 68.2% in January to May 2023 to less than 2%. The narrower gap gives businesses a more reliable basis for pricing and planning.
“The sources of foreign exchange have also changed. Of the US$10.82 billion in total inflows recorded in July 2026, US$7.33 billion, or nearly 68%, came from autonomous sources.
“Remittances through International Money Transfer Operators reached US$950 million that month. Net foreign portfolio inflows totalled US$6.31 billion in January to August 2026. Portfolio flows can reverse, but the broader improvement in supply has reduced the market’s reliance on direct CBN provision,” he revealed.
He said external buffers became stronger as gross reserves stood at US$55.60 billion on 11 September 2026, while the end-August stock provided 11.3 months of import cover.
On recapitalisation, Abdullahi said by the end of the two-year programme announced in March 2024, 33 banks had met the revised minimum requirements and raised N4.65 trillion.
“That gives the banking system a stronger capacity to support larger financing needs as the economy grows. Nigeria’s aspiration to build a one-trillion-dollar economy by 2030 requires banks capable of mobilising and allocating capital on a much larger scale.
“Stronger capital buffers should enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets. They also provide greater capacity to absorb losses during economic stress and sustain investment in innovation and digital transformation.
“The environment in which these banks operate is increasingly interconnected. Geopolitical uncertainty, climate-related risks, cyber threats and rapid technological change can transmit shocks across borders through financial, trade and technology channels, affecting capital flows, exchange rates and external buffers.
“Resilience therefore requires institutions to anticipate emerging risks, absorb shocks, adapt and recover. The lessons of past financial crises underline the value of adequate capital, but also the need to prepare for risks that may take unfamiliar forms,” he further highlighted.
The CBN will continue to pay close attention to governance, asset quality, liquidity and large exposures.
“We will also expect banks to protect customer data, maintain reliable payment services and recover quickly from disruptions. A stronger balance sheet must be matched by stronger management of risk.
“As more financial services move to digital channels, banks must invest continuously in cybersecurity, data protection, disaster recovery and business continuity. Innovation brings opportunities, but public trust depends on customers being able to transact securely and access their funds reliably, including when systems come under pressure.
“Our supervisory approach will continue to emphasise risk-based supervision, macroprudential surveillance and enhanced stress testing.
“Financial sector coordination, consumer protection, fintech regulation and support for responsible innovation will remain important, alongside crisis preparedness and resolution planning,” he concluded.