Nigeria’s CBN Targets Diaspora in Push to Bolster Remittance Flows
The Central Bank of Nigeria (CBN) has launched a campaign to deepen engagement with the Nigerian diaspora, hoping to bolster remittance flows that play a pivotal role in Nigeria’s financial stability. This initiative, led by a coalition of the CBN, Nigeria Inter-Bank Settlement System, key Nigerian banks, and International Money Transfer Operators, kicked off with a forum in Houston, Texas, under the theme, “Optimising Remittances to Nigeria: A Vision for the Future.”
At the forum, CBN Deputy Governor (Economic Policy), Abubakar Abdullahi, outlined the apex bank’s ambitious goal to double capital inflows and diaspora remittances, underscoring the institution’s commitment to creating a conducive environment for job creation and sustainable economic growth. “Our strategy focuses on leveraging remittances to drive inclusive growth and enhance financial inclusion, particularly as we navigate a period of bold economic reforms,” Abdullahinoted.
Deputy Governor (Financial System Stability) Philip Ikeazorhighlighted the need for diaspora remittances to be seen not merely as a source of household consumption but as a critical investment tool for national development. He argued that integrating remittances into Nigeria’s broader economic planning would solidify their impact on long-term growth.
The forum also featured contributions from key industry figures. Nneka Onyeali-Ikpe, CEO of Fidelity Bank, pointed to high transaction costs and limited financial access as persistent challenges for Nigerians abroad. She advocated for enhanced collaboration between banks and fintechs to streamline remittance channels and reduce costs.
Yemisi Edun, CEO of First City Monument Bank, focused on building trust within the remittance system, noting that a secure and reliable framework is crucial for maximising inflows. Olalere Ridwan, CEO of fintech platform LemFi, echoed this sentiment, adding that reducing Nigeria’s risk profile on the Financial Action Task Force’s grey list could significantly lower transaction fees, making remittances more affordable for the diaspora.
Dr Oliver Alawuba, Group Managing Director/CEO of United Bank for Africa and Chairman of Nigeria’s Body of Banks’ CEOs, pushed for strengthened partnerships between banks, regulators, and technology firms, stating that only a concerted effort across the financial ecosystem could effectively harness the economic potential of Nigeria’s diaspora.
This multi-pronged engagement reflects CBN’s strategic aim to channel diaspora contributions into sectors that foster sustainable development, signalling a transformative step in the Nigerian government’s broader economic vision.
