Nigeria is among the world’s top remittance destinations, consistently leading Africa in diaspora. In 2020, the country received an estimated $17.2 billion in personal remittances – a sharp drop from prior years as the COVID-19 pandemic and oil price crash hit global incomes and travel. By 2021, inflows rebounded to about $19.5 billion, rising 13% as economies reopened and Nigeria introduced incentives for formal transfers
Remittances grew further to roughly $20–21 billion in 2022, according to World Bank estimates. However, 2023 saw a slight dip: Nigeria received $19.5 billion that year, down ~2.9% from 2022. Early indicators point to another upswing in 2024 – over $20 billion (about 9% growth) was remitted in 2024 – thanks in part to currency reforms. The Central Bank of Nigeria (CBN) projects annual inflows could reach $23.8 billion by 2025, approaching record levels.
While inflows (money sent into Nigeria) dominate, outflows (money sent out of Nigeria) are relatively small. Nigeria is primarily a remittance-recipient nation rather than a sender. Personal remittances paid abroad from Nigeria have historically been modest – peaking around $1.1 billion in 2015, then dropping below $300 million by 2017 . In the early 2020s, official outflows remained in the low hundreds of millions per year or less, reflecting limited emigration of foreign workers from Nigeria and tight currency controls. In short, for every dollar Nigerians send out, dozens more flow in – underlining the economic importance of incoming diaspora funds.
Key Players Facilitating Cross-Border Transfers
1. Traditional Money Transfer Operators (MTOs)
Global remittance giants like Western Union, MoneyGram, and Ria have long been pillars of Nigeria’s remittance corridors. They operate via networks of agent banks and payout locations across the country. Virtually every major Nigerian bank (FirstBank, GTBank, Zenith, UBA, Access Bank, and others) serves as an agent or partner to these MTOs, enabling recipients to pick up cash or have funds deposited into accounts. These legacy players still handle a large share of formal inflows, though their high fees and slower processes have been challenged by newer digital alternatives.
2. Fintech and Digital Remittance Startups
In recent years, fintech innovations have transformed how Nigerians in diaspora send money home. Services like WorldRemit, Remitly, Wise (TransferWise), and Sendwave allow users in the US, UK, Europe and elsewhere to send money via mobile apps directly to Nigerian bank accounts or mobile wallets, often with lower fees than traditional MTOs. Homegrown Africa-focused platforms are also on the rise. For example, LemFi (formerly Lemonade Finance, founded by Nigerian entrepreneurs) provides multi-currency accounts for the Nigerian diaspora and easy transfers to Nigeria.
Chipper Cash, co-founded by African entrepreneurs, has amassed millions of users by making cross-border transfers “as simple as sending a text,” letting people send money across 21 African countries including Nigeria. Other notable fintech players include Nala (enabling transfers from Europe/US to Nigeria and East Africa), Eversend (a Ugandan-based multi-currency wallet serving Africa), and Leatherback (a Nigerian-founded neobank offering global accounts to individuals and businesses). These platforms leverage technology to cut transfer costs and times, appealing to tech-savvy diaspora senders. Notably, digital channels also tend to offer better exchange rates and transparency – the World Bank reports that fully digital remittances average around 5% fees versus 7% or more via cash-based methods.
3. Local Banks and Telecoms Adapting
Nigerian banks are innovating to compete in the remittance space. A recent example is Sterling Bank’s partnership with Thunes (a global B2B payment network) to enable faster direct transfers from Europe into Nigerian bank accounts. Similarly, Access Bank integrated with Thunes in 2023 to streamline cross-border payments across its African subsidiaries. Banks are positioning themselves as viable alternatives to third-party apps by offering real-time transfers and convenient deposit into customers’ accounts.
Even telecom operators have joined the fray: in late 2025, MTN’s Mobile Money (MoMo) service in Nigeria partnered with Thunes to let Nigerians receive international remittances from countries like the US, UK, and Canada straight to their mobile wallets, instantly. This blurring of lines means banks, fintechs, and mobile providers are all vying for Nigeria’s $20+ billion remittance market, driving competition and innovation to win customers. For recipients, it translates to more options – whether collecting cash at a bank, getting an alert on a mobile money wallet, or having dollars deposited to a domiciliary (foreign currency) account.
Drivers of Remittance Trends (2020–2025)
1. Economic Shifts and Diaspora Dynamics
Remittance flows closely mirror global and domestic economic conditions. The dip in 2020 was largely due to the global recession and lockdowns – many Nigerian expatriates faced job losses or income cuts, and physical channels were disrupted by travel restrictions. Despite grim forecasts, diaspora remittances proved resilient: many Nigerians abroad tightened their belts to keep supporting families back home during the pandemic. By 2021, as the U.S. and other host countries saw job markets recover, Nigerian migrants were able to send more money, resulting in a strong rebound in remittances.
High inflation in 2022–2023 in countries like the U.S. and U.K. put pressure on diaspora budgets, contributing to the slower growth and slight decline in 2023 flows. However, those same years saw need for remittances rise in Nigeria – the naira’s depreciation and economic hardship meant more families relied on dollar inflows as a lifeline. Indeed, remittances are often called a “lifeline” for households, smoothing consumption during tough times. The Nigerian diaspora’s strong sense of obligation (“love, loyalty, and responsibility,” as one analysis put it) keeps these flows relatively steady even amid global headwinds.
Another factor is Nigeria’s growing diaspora population. A wave of emigration in the early 2020s – nicknamed the “Japa” movement in local parlance – saw many professionals and students leave Nigeria for opportunities abroad. This expands the pool of future remittance senders. While new emigrants initially send less (as they settle abroad or even move savings out of Nigeria, causing some outflows), over time their earnings lead to increased inflows as they begin supporting relatives or investing back home. By 2023, Nigeria accounted for about 35% of all remittance receipts in sub-Saharan Africa, reflecting both its large migrant base and their economic clout in host countries.
2. Regulatory and Policy Changes
Government policy has had a significant impact on remittance channels and volumes during this period. Facing a collapse in official inflows in 2020, the CBN moved to liberalize diaspora remittances. In late 2020 it ruled that recipients could be paid in foreign currency (US dollars) or into foreign-currency (domiciliary) accounts, rather than forcing conversion to naira at a fixed rate. This encouraged Nigerians abroad to use official IMTOs since their families could get dollars or market-aligned rates, rather than resorting to informal brokers.
In March 2021, the central bank went further with a promo called the “Naira 4 Dollar” scheme, offering ₦5 per $1 received as a bonus to remittance recipients. The aim was to incentivize formal channels, and by early 2022 the CBN reported about $2.4 billion in remittances had flowed in through the Naira4Dollar program. While the scheme eventually wound down, it set the stage for a sustained recovery in official inflows.
Perhaps the most dramatic policy shift came in mid-2023 when Nigeria’s new government unified the exchange rate and dismantled the earlier system of multiple rates. The Naira was allowed to trade at a market-driven rate (the “willing buyer, willing seller” model), shrinking the gap between the official and parallel (black market) rates from over 60% to nearly zero by late 2025. This exchange rate reform proved to be a game-changer: the appeal of informal remittance routes (which often existed to give better exchange value) diminished, and formal remittances surged.
The CBN noted that previously, many diaspora Nigerians sent money through unofficial means to get a better Naira rate, but with the rate convergence, those flows shifted back to official channels. By July 2024, monthly remittance inflows hit an all-time high of $553 million (for that single month), a 130% jump from a year prior. The central bank credited this spike to its policies – notably, licensing more IMTO companies, ensuring quicker liquidity for those operators, and boosting confidence in the forex market. In essence, remittances thrived when regulations made the formal market transparent and rewarding.
Nigerian authorities have also been creative in leveraging technology to facilitate remittances. In June 2023, the CBN approved the use of its new digital currency, the eNaira, as an option for diaspora remittance payouts. Under this framework, if a recipient opts in, an IMTO can convert the sender’s foreign currency to eNaira (Nigeria’s central bank digital currency) which is then credited to the receiver’s eNaira wallet at the market exchange rate.
The eNaira, launched in late 2021, is intended to speed up transfers and reduce costs by cutting out intermediate banks. Take-up has been gradual (cash/USD remains preferred by many), but it signals the regulators’ openness to innovation in the remittance space. In addition, the CBN launched a “Non-Resident Nigerian” account verification (BVN) system to make it easier for diaspora senders to open and operate Nigerian bank accounts from abroad – further integrating the diaspora into the domestic financial system.
3. Technology and Innovation
Beyond policy, tech innovation has arguably been the biggest catalyst reshaping Nigeria’s remittance landscape. The pandemic accelerated digital adoption: unable to travel or send cash in person, many senders and recipients turned to online platforms. Fintech apps dramatically cut transfer times – from days or weeks via money orders, to literally seconds for mobile wallet transfers. They also introduced features like multi-currency wallets (e.g. a user can hold dollars and naira, sending at opportune times) and transparent fee breakdowns so customers know exactly what their recipient will get.
Competition from fintech drove incumbents to up their game; for instance, Western Union and MoneyGram both expanded their digital offerings and account deposit capabilities in Nigeria to stay relevant. The result by 2025 is a far more efficient market: more than ever, Nigerians abroad can remit from their smartphone and have the money land in a bank account or wallet back home almost instantly. Importantly, the cost of sending money, while still high in Africa, has been inching down due to these innovations. Africa remains the most expensive corridor (sending $200 to Africa cost about 8% in fees on average in 2022), but fintech competition is narrowing that gap.
Another tech trend has been the use of cryptocurrencies and stablecoins as unofficial remittance rails. With Nigeria’s tech-savvy youth at the forefront, some diaspora senders experimented with sending US-dollar stablecoins (like USDT) or Bitcoin to family or agents in Nigeria, who could then convert to Naira. This was particularly common when official channels were unattractive (e.g. during 2020–2021 when the naira’s black market rate was much higher than the official rate).
While crypto transfers circumvent traditional fees, they operate outside regulated channels – a concern for authorities. The CBN’s February 2021 directive restricting banks from facilitating crypto transactions was partly to rein in this growing parallel remittance avenue. Still, the interest in crypto highlighted a real demand for fast, low-cost cross-border payments, pressuring traditional players to improve.
By 2025, the conversation has evolved: instead of outright bans, many African regulators (Nigeria included) are exploring how to regulate and harness crypto and stablecoin technology for remittances in a safe way. We may see more convergence of fintech and crypto in remittances (for example, some startups now use stablecoins on the backend while letting users transact in cash or mobile money upfront).
Lastly, the expansion of mobile money and digital banking in Nigeria has opened new channels for remittance delivery. The licensing of mobile money operators (like MTN’s MoMo and Airtel’s Smartcash) means millions of unbanked Nigerians now have mobile wallets that can receive international transfers. Fintech–bank partnerships, such as the Thunes integrations, indicate that real-time, 24/7 remittances (no longer limited by banking hours or cash availability) are becoming standard.
We also see remittance-focused fintechs broadening into full financial services: for instance, in 2025 LemFi started offering diaspora customers Nigerian USD-denominated accounts and bank cards, not just one-off transfers. The logic is that capturing remittances is the entry point to a deeper banking relationship. All these innovations paint a picture of a remittance ecosystem in rapid evolution, leveraging technology to make sending money as frictionless as possible.
Why Remittances Rose or Fell: A Recap
To summarize the interplay of factors from 2020 to 2025: pandemic disruptions caused the 2020 slump, but also accelerated digital remittance adoption. Economic recovery and pro-diaspora policies fueled the 2021–2022 rebound. By 2023, global inflation and tighter budgets abroad tempered growth, even as Nigeria’s currency woes made remittances even more critical at home. Meanwhile, regulatory reforms in 2023 unlocked pent-up flows that had been going through informal channels, contributing to the strong surge into 2024.
Through it all, the Nigerian diaspora’s commitment to family support has kept inflows remarkably resilient – far more stable than volatile oil revenues. It’s often noted that remittances “go directly into households’ pockets,” boosting consumption, funding education, healthcare, and small businesses. In Nigeria’s case, yearly remittance inflows have at times exceeded government budgetary revenue or foreign aid by multiples, underscoring how these personal transfers carry macroeconomic significance.
The Road Ahead: Future Trends Beyond 2025
Looking beyond 2025, Nigeria’s remittance landscape is poised for further growth and transformation. The World Bank projects that global remittance volumes will keep expanding slowly, rising about 2–3% annually through 2024 and 2025. For Nigeria, specific forecasts are bullish: CBN’s outlook estimates diaspora inflows could reach $26 billion by 2026, up from ~$24 billion in 2025. Several tailwinds support this optimism.
Firstly, Nigeria’s diaspora community is expected to continue expanding as migration trends persist – creating a larger base of earners abroad. Secondly, the reforms implemented in 2023–2024 (exchange rate unification, more IMTO entrants, etc.) seem likely to keep more flows in official pipelines, especially if the government maintains market-driven policies. CBN officials have even voiced an ambition to double remittance inflows in the near future to bolster forex reserves, indicating that pro-diaspora initiatives will remain on the agenda. We may see new incentives or instruments – for example, diaspora bonds or investment schemes – to channel remittances into development projects, as other countries have tried.
On the technology front, expect even greater digital integration. Instant cross-border payments could become the norm, as infrastructure by firms like Thunes, MFS Africa, Visa and others make sending money internationally as easy as a local transfer. The cost of sending money is also likely to drop with increasing competition and potential regulatory caps (aligning with the UN Sustainable Development Goal of reducing remittance costs to under 3%). Fintech consolidation and partnerships are on the horizon: larger players might acquire niche startups to broaden their remittance reach, and banks will likely collaborate more with fintechs to stay competitive.
Another trend is remittance providers evolving into multi-service platforms – we’re already seeing apps offer savings, loans, and investment products to diaspora users, so that sending money home is just one feature of a broader financial relationship. This could strengthen diaspora ties to the home country’s economy, as people not only send money to family but also invest in Nigerian businesses or real estate through digital channels.
Crucially, macroeconomic stability in Nigeria will influence remittance behaviour. If Nigeria’s economy improves and confidence in the naira is restored, diaspora Nigerians may send more funds for investment (rather than merely upkeep), and some might even return or circulate back for entrepreneurship. Conversely, if high inflation or currency instability re-emerges, it might encourage higher remittance volumes (as families need more support) but also risks driving people to alternative stores of value (like sending dollars to be saved, or using crypto). Policymakers will need to maintain a delicate balance: making the official channels attractive and reliable, as they have started to do, while ensuring the money is put to productive use.
In conclusion, cross-border personal remittances will remain a vital and growing lifeline for Nigeria. The 2020–2025 period highlighted how these flows respond to global crises, domestic policies, and technological change. By 2025, Nigeria’s remittance ecosystem is more digital, more competitive, and more integrated into the formal financial system than ever before. For the general public and innovation enthusiasts, the remittance story is a compelling example of how innovation, diaspora networks, and smart policy can intersect to drive economic resilience. As Nigeria moves beyond 2025, all signs point to remittances continuing to surge – connecting the Nigerian “innovation village” to its global village, one transaction at a time.
