Nigeria’s Economy on the Mend, Diaspora Remittances Key to Recovery – CBN Governor

Nigeria’s Central Bank Governor, Dr. Olayemi Cardoso, has stated that the country’s economic outlook is improving steadily, with key indicators reflecting growing stability and investor confidence. Speaking after the recent Monetary Policy Committee (MPC) meeting in Abuja, Cardoso emphasized the importance of continued reforms and collaborative monetary-fiscal efforts in shaping Nigeria’s recovery.

For Nigerians in the diaspora, the message is particularly clear: confidence is being rebuilt, and the channels for remittance and investment are now more reliable than ever.

The CBN governor pointed to improved macroeconomic fundamentals, which have begun attracting renewed interest from global investors. Nigeria’s economy, once battered by inflation and currency volatility, is now showing signs of resilience.

International ratings agency Fitch recently upgraded Nigeria’s credit outlook an endorsement that, according to Cardoso, signals a growing sense of stability in the country’s financial management.

Cardoso highlighted the reduction in exchange rate volatility, which has dropped from over 4% to less than 0.5%, and noted that net foreign reserves had risen sharply from just over $3 billion to $23 billion thanks to reforms and enhanced transparency in the central bank’s operations.

Addressing foreign exchange sustainability and the broader balance of payments, the governor explained that Nigeria’s more competitive currency was boosting non-oil exports, including gas. The launch of major local refineries such as Dangote's is also expected to reduce fuel imports and stabilize external balances further.

For the diaspora community, Cardoso acknowledged the long-standing challenge of high remittance costs, which average around 7%. In response, he revealed that the CBN has begun engaging with global financial institutions, including the World Bank, to reduce these costs through increased transaction volumes and fintech innovation.

He also confirmed the development of new diaspora-friendly financial products in collaboration with Nigerian banks and money transfer operators. These initiatives followed consultations with members of the diaspora and culminated in the rollout of tailored banking solutions discussed during the CBN’s engagements in Houston, Texas.

As part of the wider reforms, the Central Bank is also working to strengthen Know Your Customer (KYC) protocols and improve anti-money laundering measures to secure Nigeria’s removal from the Financial Action Task Force (FATF) grey list. This would further boost the credibility of remittance channels and reduce financial transaction friction for Nigerians abroad.

Cardoso set a bold target of attracting $1 billion in monthly diaspora inflows—a target that, while ambitious, is not out of reach. According to him, inflows have already surged from just over $200 million to more than $600 million in one month, signaling what is possible when systemic barriers are removed.

The CBN now views itself as a facilitator of private-sector innovation, having cleared the way for banks to lead the charge in financial product development. “We’ve opened the door, removed the roadblocks, and handed it over to the banks,” Cardoso said. “They will benefit from it, and most importantly, all Nigerians will be better off as a result.”

For Nigerians abroad seeking to invest, save, or remit money back home, the signals from Nigeria’s apex bank are clear: the country is stabilizing, and your participation in its recovery is not just welcomed, but critical.