Remittances Surpass Oil in Nigeria's FX Landscape

As of February 2026, Nigeria's external reserves have climbed to $49 billion, marking a significant milestone in the country's foreign exchange position, according to Central Bank Governor Yemi Cardoso. Remittances have quietly emerged as a reliable foreign exchange driver, surpassing oil revenues amid ongoing reforms by the Central Bank of Nigeria (CBN).

In 2023, Nigeria received approximately $19.5 billion in remittance inflows, representing a 35% share of remittances in Sub-Saharan Africa, with projections suggesting an increase to $23 billion by 2025. The majority of these remittances originate from the United States, United Kingdom, and Canada.

However, experts caution that Nigeria could face a 15-20% decline in remittances due to global economic shocks and restrictive immigration policies in these countries. The CBN's reforms aim to formalize international money transfer operations and improve monitoring of inflows, but reliance on remittances poses risks, particularly in light of fluctuating oil revenues and geopolitical tensions affecting global oil markets.