Nigeria's remittance inflows through International Money Transfer Operators (IMTOs) surged to a record $947 million in July 2026, bringing the country within reach of the Central Bank of Nigeria’s (CBN) ambitious $1 billion monthly target.
The July figure is the highest monthly remittance inflow ever recorded through formal channels, reflecting the growing impact of reforms the apex bank has rolled out to attract more diaspora funds into the regulated financial system.
With the latest increase, formal remittance inflows reached about $3.8 billion in the first seven months of 2026, a 50.2% jump over the same period in 2025.
The rise matters for Nigeria’s foreign exchange market, households and broader external sector, as increased formal remittance flows add liquidity, improve transparency and strengthen the country’s external financing position.
CBN Governor Olayemi Cardoso said the July figures show that the bank’s earlier ambition of hitting $1 billion in monthly formal remittances is no longer just aspirational.
“When we set a clear ambition to reach US$1 billion a month in remittance inflows through formal channels nearly two years ago, some people thought we were dreaming. At US$947 million in July, we are now approaching that milestone,” he said.
CBN Reforms Behind the Sharp Rise in Formal Transfers
The sharp increase follows a series of reforms by the CBN to make formal remittance channels more competitive, accessible and transparent.
These include a move toward a more market-determined exchange rate, changes to the regulatory framework governing IMTOs, and the introduction of the Non-Resident Bank Verification Number (NRBVN), which allows Nigerians abroad to open and verify accounts remotely.
The apex bank has also intensified engagement with IMTOs, deposit money banks and Nigerian diaspora communities in key remittance corridors to address bottlenecks that have historically pushed senders and beneficiaries toward informal channels.
More recently, the CBN strengthened requirements for remittance transactions to be routed through designated settlement accounts with authorised dealer banks, further tightening transparency around foreign exchange entering the country through formal routes.
Formal-Informal Gap Seen Narrowing After Years Of Leakage
The reforms address Nigeria’s long-standing challenge of capturing the full value of its diaspora remittance market.
For years, a significant share of remittance inflows is believed to have moved through informal channels, limiting how much of that foreign exchange contributes to official liquidity and economic planning.
The latest data suggest the gap between formal and informal channels may be narrowing as regulatory and market changes make formal transfers more attractive to senders and recipients alike.
The 50.2% year-on-year growth recorded over the first seven months of 2026 points to more than a one-off monthly surge.
According to the CBN, the focus is on sustaining the broader upward trend rather than placing too much weight on individual monthly fluctuations, which can vary depending on seasonal and market factors.
Cardoso said the July performance should be viewed as an important milestone in a longer-term strategy to build stronger, more institutionalised remittance inflows.
“July is an important marker, but our focus is not on a single month. It is on creating the conditions for sustained growth in formal remittances. We expect to keep seeing improvement and believe Nigeria can reach and ultimately sustain monthly inflows above US$1 billion,” he said, framing the increase as an important additional source of foreign exchange as Nigeria continues pursuing greater FX market stability and stronger external buffers.
