Remittance Outflows Drop 36% as Reforms Stabilise Economy
- 11 hours ago
- 2 min read
Nigeria recorded a sharp decline in remittance outflows in 2025, with total international payments falling by 36.09 per cent year-on-year, according to data released by the Central Bank of Nigeria.
Figures show that outflows dropped from N1.91bn in 2024 to N1.22bn in 2025, representing a reduction of N689.55m. The contraction reflects a slowdown in funds leaving the country for overseas transfers by individuals and businesses.
A closer look at the data indicates that 2024 experienced significantly higher and more volatile outflows, with peak payments recorded in May, June, and September. These three months alone contributed a substantial portion of the year’s total, highlighting sustained pressure on external payments during that period.
In contrast, 2025 saw more moderate and controlled monthly outflows. No single month exceeded N200.31m, with December emerging as the highest, followed by November and September. The overall pattern suggests a more stable external payments environment.
Monthly figures for 2025 reveal fluctuations but a generally subdued trend. Outflows started at N54.44m in January, rose in February, and dipped sharply in April before gradually increasing towards the end of the year. October recorded the lowest figure, while November and December accounted for a significant share of the annual total.
Early 2026 data shows mixed signals. January recorded N107.47m in outflows, nearly doubling the figure for the same period in 2025. However, it marked a sharp decline from December 2025 levels, indicating short-term volatility.
The drop in outflows coincided with a rise in remittance inflows, which reportedly surged to about $600m monthly in 2025. This shift suggests an improvement in Nigeria’s net foreign exchange position, with more funds entering the economy than leaving.
The trend aligns with ongoing monetary and foreign exchange reforms introduced by the Central Bank, including changes to exchange rate policies and stricter requirements for international money transfer operators.
These measures are aimed at improving transparency, boosting diaspora remittances, and strengthening confidence in the foreign exchange market.
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