Nigeria’s formal remittance channels recorded their strongest month on record in July 2026, with inflows reaching $947 million, according to the Central Bank of Nigeria (CBN). The figure brings the country within striking distance of the $1 billion monthly target the central bank set nearly two years ago.
The July total, reported through International Money Transfer Operators (IMTOs), marks the highest monthly remittance ever captured through formal channels. It also lifted cumulative IMTO inflows for the first seven months of 2026 to $3.8 billion—a 50.2% increase over the same period in 2025.
A Milestone Within Reach
CBN Governor Olayemi Cardoso acknowledged the progress, noting that the latest figures validate the bank’s earlier ambition. “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,” Cardoso said.
The governor emphasized that the focus remains on sustaining growth rather than celebrating a single month’s performance. “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 added.
Reforms Driving Formal Channel Adoption
The surge in remittances follows a series of CBN reforms aimed at making formal channels more competitive, transparent, and accessible. Key measures include a shift toward a more market-determined exchange rate, updates to the regulatory framework for IMTOs, and the introduction of the Non-Resident Bank Verification Number (NRBVN).
The central bank has also deepened its engagement with IMTOs, commercial banks, and Nigerian diaspora communities. More recently, it mandated that remittance transactions be routed through designated settlement accounts with authorized dealer banks, a move designed to improve traceability and efficiency.
Broader Economic Implications
Beyond the headline numbers, the CBN says the growth in formal remittances strengthens foreign exchange liquidity and transparency. Increased diaspora funds also support household incomes and investment, while improving the country’s external financing position.
The trend reflects the growing impact of policies aimed at formalizing remittance flows, which have historically been difficult to track due to informal channels. By bringing more transactions into the banking system, the CBN gains better visibility into the country’s foreign exchange inflows, which can help stabilize the naira and support macroeconomic planning.
Next Steps
Cardoso indicated that the CBN will continue its outreach to Nigerian diaspora communities and financial sector partners across key remittance corridors. The bank plans to leverage engagements in major global financial centers to work with diaspora groups, IMTOs, banks, and other stakeholders to reduce bottlenecks and encourage more remittances through formal channels.
With July’s record performance, the $1 billion monthly target now appears achievable in the near term. The central bank’s challenge will be to ensure that this momentum is not a one-off, but the beginning of a sustained upward trend.
Source: The Sun Nigeria
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