CBN Aims for $1 Billion Monthly Remittances After Addressing Diaspora Concerns

The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, on Saturday in Washington DC stated that having addressed concerns raised by International Money Transfer Operators (IMTOs) and with the assurances from Nigerians in the Diaspora, the apex bank was confident that it would attract $1 billion monthly remittances.

Cardoso stated this at a joint press conference with the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, at the end of the International Monetary Fund (IMF) and the World Bank Annual Meetings.

The CBN governor, who said the apex bank was working assiduously to get Nigeria out of the grey list, added that remittances, which were a little above $250 million as of April this year, increased to over $600 million as of September this year.

This is just as Edun has declared that the bold reforms of President Bola Tinubu’s administration were yielding the desired results.

According to Cardoso, “Nigeria has such a strong diaspora community here; in the earlier stages of the reforms, IMTOs were having issues transferring money back to Nigeria, and we felt it was important to engage them, and we did. As a result of that engagement, we identified particular problems, of which a lot of responsibility was shared. Things have since improved because as at the last meetings, which was, I think, April, monthly inflows were about $250 million, but as of September, it had risen to $600 million.

“With the recent announcement by Nigeria Interbank Settlement Systems (NIBBS) on Bank Verification Number (BVN), and other products that the banking industry is offering, and through engagement with the diaspora, we believe we will be able to move accordingly and again, rising from that engagement, we put our sights on increasing the inflows to $1 billion monthly and I’m confident that we will get there,” he explained.

To further boost Investors’ confidence in the Nigerian economy, the CBN governor disclosed that the apex bank was doing everything possible to remove Nigeria from the Grey List.

A grey list is a list of countries with shortcomings in tackling illicit financial flows.

Countries on the grey list are under increased monitoring by the Financial Action Task Force (FATF) due to perceived weaknesses in their anti-money laundering (AML) and combating the financing of terrorism (CFT).

FATF leads global action to tackle money laundering, terrorist, and proliferation financing.

Giving a breakdown of his achievements in the last one year, the CBN governor said: “In the last one year, our focus has been on the exchange rate, enhancing financial systems provision, fostering financial inclusion, and enhancing transparency in our monetary policy decisions and communications.

“We embarked upon bold and necessary reforms to return to the path of monetary policy orthodoxy, as well as remove observed distortions in the foreign exchange market. Our efforts have yielded significant progress as volatility in the foreign exchange market has abated measurably and remittances have also increased significantly; we have achieved increased transparency and improved overall supply in the foreign exchange market, leading to reduced arbitrage and speculative activities and eliminated the front loading of foreign exchange demand.”

He added that the CBN recapitalisation policy has prompted deposit money banks to strengthen their financial positions, a process he said is expected to result in a more robust and resilient banking sector.

“The exercise is expected to support the realisation of the $1 trillion economy by 2030. Allow me to reaffirm our commitment to addressing the challenges ahead, recognising that much remains to be done to fully achieve our goals. Our path forward includes consolidating and sustaining current progress through an efficient, transparent market system and deepening financial and economic inclusion, particularly for small businesses, households, women, and young people across Nigeria, by leveraging smarter technologies and remote banking solutions.

“We aim to reduce transaction costs and expand financial access, ensuring that every Nigerian, regardless of location or demographic, can meaningfully participate in our evolving financial system regarding our commitment to orthodox monetary policy. Let me reiterate our determination to follow this path through a sequenced approach to tackling all challenges ahead. We recognise the continued support of our key stakeholders, including investors, banks, Nigeria diaspora, and businesses with our counterparts on the fiscal side, we have strengthened collaboration over the past year by establishing several joint committees. These committees are designed to drive actionable outcomes, creating impactful platforms for stakeholder engagement and delivering concrete solutions to align monetary policy with fiscal operations more effectively. I’m confident that with our collective efforts and sustained commitment, we can pave the way for a more prosperous Nigeria that fosters robust and inclusive growth,” he said.

Also speaking, the Minister of Finance and Coordinating Minister of the Economy, Edun said the bold reforms embarked upon by President Tinubu were yielding the necessary results.

“It has been a very interesting week of conversation at the highest level about the world economy, the status, direction, and various inputs as to the policy restrictions. We all agree that there is a need to combat inflation, for most of Europe, they are close to their target level of two per cent. Their economy is gradually recovering, and as a result, is gradually easing their monetary positions, which were very tight.

“In the advanced economies with inflation trending down, interest rates are also coming down and that is good news to those that have to go to the market to borrow money. For us in emerging markets and developing economies, there is still relatively high inflation and the majority view at this time is that interest rates have to remain high.

“At the same time, debt levels are clearly escalated and care has to be taken there and in addition, growth is low. So, we try to make sure that inflation is low, which needs to be combated as a priority because of the negative effect it has on purchasing power. But critical investments have to go on to ensure growth because, at the end of the day, it is growth, job-creating growth that will lead to poverty reduction,” he said.

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