Tougher Global Immigration Rules Jeopardize Nigeria’s $1bn Diaspora Remittance Ambition
The Central Bank of Nigeria (CBN) is facing mounting challenges in its push to secure $1 billion in monthly diaspora remittances, a key plank in its foreign exchange strategy. While remittances remain Nigeria’s largest non-oil foreign exchange source—surpassing even foreign direct investment—recent changes in global immigration and remittance laws may severely impact the CBN’s efforts. Countries like the U.S., UK, and UAE have adopted stricter immigration and remittance rules that could dampen formal fund inflows, which are critical for household support and currency stability back home.
In response, the CBN has rolled out reforms like the Non-Resident Bank Verification Number (NRBVN), allowing Nigerians abroad to remotely open local bank accounts. This, combined with fintech partnerships, helped push monthly remittance figures from $200 million to over $600 million by early 2025. Governor Olayemi Cardoso called the reforms “game-changing” and expressed optimism about achieving the $1 billion monthly target. However, recent developments—including a new U.S. law imposing a 3.5% remittance surcharge and more restrictive visa rules—now threaten that momentum.
These tougher foreign policies could push Nigerian migrants to use informal remittance channels, undermining CBN’s formalization efforts. Analysts warn this could reduce remittance volume, increase FX pressure, and limit access to essential goods and services for millions of Nigerian households. The naira is already facing depreciation, and dwindling remittances could further strain Nigeria’s external reserves and debt repayment capacity, particularly with public finances already under pressure.
Experts are calling for Nigeria to intensify diplomatic engagement and expand its strategy beyond consumption-based remittances. Proposals like diaspora bonds and investment-driven schemes in housing, agriculture, and renewable energy are gaining traction. As global migration tightens, sustaining diaspora inflows will require innovative policy, trust-building with Nigerians abroad, and a pivot toward long-term financial instruments. The road to $1 billion monthly is still possible—but far more uncertain than before.
Source: The sun