Nigeria’s Remittances Surpass Oil Revenues in 2025

Nigeria's diaspora remittances exceeded $464.8 million in July 2025, more than double the previous year's figure. This growth highlights the effectiveness of exchange rate reforms and efforts to curb informal financial channels, which have redirected diaspora funds into the formal banking system.

Diaspora inflows have shown resilience, contributing an estimated 5-6 percent to Nigeria's GDP and totaling between $22.78 billion and $23 billion in 2025, according to the International Fund for Agricultural Development (IFAD).

Nigeria ranks as the second-largest recipient of diaspora remittances in Africa, following Egypt.

The increase in reserves indicates improved external buffers, though oil receipts, capital flows, trade balances, and foreign exchange demand continue to influence currency performance and reserve levels.

Formal remittances can support foreign exchange sources, but their impact on market liquidity and reserve accumulation depends on broader external inflows and outflows.