In a strategic move to harness the economic potential of Nigeria’s diaspora, the Central Bank of Nigeria (CBN) has led a combined team of the Nigeria Inter-Bank Settlement System (NIBSS), major Nigerian banking institutions, and International Money Transfer Operators (IMTOs), to parley with the Nigerian Diaspora community at a forum with the theme ‘Optimizing Remittances to Nigeria: A Vision for the Future’ held in Houston, Texas, United States of America.
Speaking at the forum the Deputy Governor (Economic Policy), CBN, Muhammad Sani Abdullahi, told the stakeholders in the remittance ecosystem that the aim was to engage with the Nigerian diaspora community on opportunities to enhance remittance flows and strengthen Nigeria’s financial sector.
Reiterating Governor Olayemi Cardoso’s commitment to double the volume of capital inflows and diaspora remittances to Nigeria, the director restated the apex bank’s commitment to “strengthening macroeconomic fundamentals to create an enabling environment where the private sector can thrive and generate quality jobs for Nigerians.”
Abdullahi said the event was part of a series of engagements the Bank would be participating in over the coming months, pointing out that the CBN, in an era of bold reforms, was prioritising strategies to leverage diaspora remittances as a catalyst for inclusive economic growth, financial inclusion, and overall national development.
Also speaking, the CBN’s Deputy Governor (Financial System Stability), Mr. Philip Ikeazor, reiterated the forum’s call to shift the perception of remittances from a source of consumption to a tool for investment, stressing that remittances could play a transformative role in Nigeria’s development if channelled effectively into productive investments.
In his remarks, , the Group Managing Director/Chief Executive Officer (CEO) of United Bank for Africa (UBA) and Chairman of the Body of Banks’ CEOs in Nigeria, Dr. Oliver Alawuba stressed the need for collaboration among banks, regulators, fintechs, and the broader ecosystem, noting that no single institution can unlock the total value of remittances.
Similarly, the CEO of Fidelity Bank, Nneka Onyeali-Ikpe, identified the challenges diaspora members face in sending money home efficiently, namely high costs and limited access to financial services.
On how to address the remittances challenges, the Group CEO of Venture Garden, Bunmi Akinyemiju, explained that stronger collaboration between banks and fintechs could reduce the costs and improve access to remittances.
This is even as the CEO of First City Monument Bank, Yemisi Edun, stressed the importance of trust in the remittance system.
She said: “One of the things we’re focusing on is a robust KYC system to instil confidence. We believe trust is not something we can build alone, so we are partnering with IMTOs and fintechs.”
In his remarks at the forum, the Executive Director of Zenith Bank, Adobi Nwapa, also spoke on the need for greater concessions for diaspora customers, noting that “we’ve made it so simple. We’ve been doing a lot of concessions to the diaspora because we value their remittances.”
Also, while expressing his concerns about Nigeria’s presence on the Financial Action Task Force (FATF) grey list, the CEO of LemFi, Olalere Ridwan, argued that reducing Nigeria’s risk status could significantly lower these fees and make remittances more affordable for the diaspora.
According to the World Bank latest data, diaspora remittances have been a significant source of financial inflows for Nigeria, averaging $20.5 billion annually over the past decade. However, much of these funds are directed toward immediate consumption rather than long-term investments that could drive economic growth.
In furtherance of its statutory roles in the financial system, the CBN, in collaboration with key financial system stakeholders, aims to reverse this trend by exploring how remittances can be better leveraged for national development.
Cardoso has since his assumption of office continued to emphasize Nigerian diaspora’s roles in shaping the country’s economic future.
The Houston forum, the first in a series of planned engagements, highlights Governor Cardoso’s focus on strengthening ties with Nigerians abroad. The CBN aims to unlock the full potential of remittances and harness the power of the diaspora by collaborating with key stakeholders to drive sustainable economic growth.
