The Central Bank of Nigeria (CBN) has intensified efforts to boost foreign reserves through diaspora inflows, as Governor Olayemi Cardoso revealed a list of Nigerian banks selected to drive a $1 billion diaspora reserves target by 2026.
Speaking at the 18th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, Cardoso commended key financial institutions, including Zenith Bank, Access Bank, and Fidelity Bank, among others, for spearheading the initiative.
He emphasized that the success of the target now rests largely on the capacity of commercial banks to deepen remittance channels and build investor confidence.
Nigeria has recorded a significant rise in diaspora remittances in recent months. According to Cardoso, inflows surged to $600 million monthly as of August 2025, showing steady growth despite global economic headwinds.
With the new $1 billion target, the apex bank aims to position Nigeria as a top African destination for diaspora investment.
Cardoso assured Nigerians that the CBN would provide full regulatory backing and policy support to ensure that remittance flows are channeled transparently and effectively into the economy.
“It is now over to the banks to make this happen,” Cardoso said.
“I commend Zenith, Access, Fidelity, and all other banks involved because this effort makes a huge difference in how our people in the diaspora see us. I am taking a personal interest in this project, and I want it to continue.”
Nigeria remains one of Africa’s largest recipients of diaspora remittances, which have consistently outpaced foreign direct investment (FDI) in recent years.
According to World Bank data, remittances accounted for over 4% of Nigeria’s GDP in 2024, serving as a vital lifeline for households and a source of foreign exchange stability.
Economists say boosting diaspora reserves is crucial at a time when the naira continues to face pressure from currency volatility, inflation, and declining oil earnings.
Dr. Ifeoma Nwosu, a financial analyst, told Daily Post that diaspora inflows not only strengthen the external reserves but also help diversify the economy.
“Every dollar remitted through official channels adds stability to the foreign exchange market,” Nwosu explained.
“By targeting $1 billion in diaspora reserves, the CBN is essentially seeking to build a more reliable buffer against external shocks and reduce Nigeria’s dependence on crude oil exports.”
Commercial banks have become the central players in facilitating cross-border remittances.
With digital banking and fintech integration, institutions such as Zenith, Access, and Fidelity have expanded their international partnerships to make transfers faster and more affordable.
Industry observers note that Nigerian banks are increasingly leveraging mobile technology and diaspora-focused investment products to capture more inflows.
For example, diaspora bonds, dollar-denominated accounts, and cross-border payment platforms are gaining traction among Nigerians abroad.
A senior banking executive at one of the named institutions, who preferred anonymity, said the collaboration with the CBN reflects a broader strategy to restore confidence in Nigeria’s financial system.
“We are working on reducing bottlenecks in remittance processes while also ensuring that Nigerians abroad see investment opportunities in infrastructure, real estate, and SMEs,” the banker said.
The implementation of the Petroleum Industry Act (PIA) and ongoing reforms in the banking sector, including recapitalization measures, are expected to boost investor trust.
Cardoso’s emphasis on diaspora remittances aligns with President Bola Tinubu’s broader economic diversification plan, which seeks to unlock non-oil revenue sources.
However, challenges remain. The high cost of remittance charges, limited awareness of official channels, and concerns about transparency have discouraged some Nigerians abroad from sending money through formal systems.
To address this, the CBN has pledged to work closely with banks and fintechs to reduce transaction costs and strengthen anti-money laundering frameworks.
If successful, the $1 billion diaspora reserves target could provide much-needed relief to Nigeria’s struggling foreign exchange market, which has been battered by speculative demand and falling oil receipts.
Experts also believe it could open up avenues for infrastructure financing, SME support, and agricultural development through structured investment products.
“The Nigerian diaspora is a sleeping giant,” said Adewale Akinlabi, a financial inclusion advocate.
“If properly engaged, they could be one of the strongest pillars for Nigeria’s economic revival.
What Cardoso is pushing for is a recognition that diaspora funds are not just remittances to families, but strategic capital for national growth.”
As the countdown to 2026 begins, all eyes will be on the performance of the banks and the policy consistency of the apex bank.
For millions of Nigerians abroad, the initiative could mark a turning point in how their hard-earned money impacts the nation’s economic future.