Business

CBN’s $1bn monthly diaspora inflow target faces immigration threat

Published

10 months ago

July 15, 2025

CBN Governor, Olayemi Cardoso

CBN’s $1bn monthly diaspora inflow target faces immigration threat

With many countries recalibrating their immigration and international fund remittance frameworks to cement their protectionist posturing, the Central Bank of Nigeria’s (CBN) push to secure $1 billion in monthly diaspora remittances now faces fresh headwinds.

Offshore inflows, seen as a cornerstone of the apex bank’s foreign exchange strategy, are now in the midst of policy shifts especially as countries like the United States and the United Kingdom move to tighten immigration controls and remittance regulations.

Diaspora remittances have long served as a critical cushion for Nigeria’s economy.

In 2023 alone, remittances topped $21 billion, according to World Bank data, making Nigeria the largest recipient in Sub-Saharan Africa.

These inflows often exceed foreign direct investment and official development assistance combined and serve as vital source of income for millions of households, especially in rural areas.

Recognising this potential, the CBN prioritised boosting diaspora remittance inflows through a raft of financial and regulatory reforms.

This year, the apex bank in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS) introduced the Non-Resident Bank Verification Number (NRBVN) framework to enable Nigerians abroad remotely open BVN-linked naira and domiciliary accounts.

The move, designed to capture more inflows through official channels, was widely praised by stakeholders and fintech operators alike.

Governor, CBN, Olayemi Cardoso, while fielding questions from newsmen at the last Monetary Policy Meeting (MPC), said the platform will be a game-changer in expanding access to financial services for Nigerians in the diaspora.

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Cardoso noted that the cost of repatriating funds from overseas to Nigeria and many other emerging markets which stands around 7 per cent is clearly unacceptable.

“One key solution, which we have now begun to pursue, is rooted in the volume business. As we drive up transaction volumes, the cost of remittances will inevitably decline and I must say, the recent bold steps taken in partnership with the Nigerian Regulatory Bank Verification Network (NRBVN) is truly game-changing. This is what our diaspora community has been waiting for, that is, the ability to transact from abroad seamlessly. Now, the opportunity to invest in the country of their birth is wide open. It could not have come at a better time”.

According to him, the apex bank sees itself as facilitators and catalysts clearing the path and letting the private sector take the lead. He noted that the key target of $1 billion a month in diaspora inflows might sound ambitious, but it is not unattainable.

The CBN’s strategy appeared to gain traction. By early 2025, remittances through formal channels had climbed to over $600 million monthly, with a target of hitting $1 billion by the third quarter (Q3) of the year.

“In fact, we have already made remarkable progress moving from just over $200 million to peaking at over $600 million in a single month. That is the Nigerian spirit in action and at work. There is nothing that would stop us from exceeding that. This shows what is possible when we get creative, stay committed, and work together. Other countries like Pakistan, India, and others have done this, so why can’t we? So, this is a reflection and effort that proves what can be achieved when the government steps back and allows the private sector to lead”, the CBN governor remarked.

However, that momentum is now at risk as the U.S President, Donald Trump, at the weekend signed the proposed “One Big Beautiful Bill”. The bill includes a provision to levy a 3.5 per cent surcharge on all outbound remittances by foreign nationals. The funds raised would reportedly go toward enhancing border security and immigration enforcement.

For Nigerian families that rely on modest monthly transfers from relatives abroad often between $100 and $500, a new fee structure could sharply reduce the value of those transfers or deter formal transactions altogether. Already, fintech operators say they are fielding concerns from customers about the potential costs and implications of the policy.

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Analysts at CardinalStone Partners in a recent brief seen by Daily Sun, warned that such a tax could push many Nigerians abroad to revert to informal and unregulated remittance channels, undermining efforts by the CBN to formalise inflows and improve transparency in the foreign exchange market.

Similarly, the U.S Department of State noted that effective July 8, 2025, most non-immigrant and non-diplomatic visas issued to Nigerians will now be valid for only three months and limited to a single entry.

Across Europe and Asia, governments are implementing tighter immigration controls, increased financial scrutiny, and stricter documentation requirements for money transfers. Specifically, in the UK, another major remittance source country for Nigeria, new rules around immigration process for Nigerians applying for study and work visas, proof of income and recipient verification have increased processing times and compliance burdens for remittance service providers.

The United Arab Emirates (UAE) has also imposed tougher entry conditions for Nigerian travelers, banning transit visa applications entirely. According to the UAE, Nigerians aged 18-45 will no longer be eligible for tourist visas unless accompanied while those aged 45 and above must provide a 6-month personal bank statement showing at least $10,000 monthly balance before they are granted visas.

These policy shifts are driven by a combination of factors: anti-money laundering efforts, populist politics, national security concerns, and a push to tax cross-border capital flows. But for developing economies like Nigeria, they represent a new layer of risk in already fragile FX ecosystems.

Economic implications

If diaspora remittances fall significantly, the consequences for Nigeria could be severe. First, it would tighten pressure on the naira, which has already experienced persistent volatility despite CBN interventions and rising oil prices.

The naira depreciated by 0.2 per cent to N1,531/$1 at the official market amid emerging demand pressures which outweighed supply from foreign portfolio investors (FPIs) looking to participate in the Open Market Operations (OMO) Primary Market Auction (PMA) despite $50 million intervention from the CBN.

Secondly, household consumption could suffer as remittances are often used to pay for food, school fees, medical bills, and housing. A drop in these flows could worsen poverty, reduce domestic demand, and strain public social services. Finally, Nigeria’s fiscal position could weaken further with the government already grappling with a high debt burden and limited revenue.

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Hence, reduced FX inflows could hinder its ability to service external debts or finance imports, especially for critical sectors like power and healthcare.

Experts’ views

This has led to several calls for Nigeria to engage in high-level diplomacy to advocate for policies that will not disproportionately hurt its diaspora.

They also called for a diversified strategy that goes beyond remittances. One such option is the issuance of diaspora bonds, which would allow Nigerians abroad to invest in infrastructure and development projects back home in exchange for returns in dollars or naira.

Governor Cardoso has hinted at such a possibility, noting in a recent interview that the CBN and Ministry of Finance are exploring instruments to channel diaspora savings into productive uses.

Founder, Cowry Asset Management Limited, Johnson Chukwu, speaking during a recent forum, noted that this could only work if there is a high level of transparency, security and impact.

“There is no doubt that there is appetite within the diaspora community for investment products but this can only work if there is a high-level of transparency, security, and impact”. Do we need to move beyond consumption driven inflows? The answer is yes. We need to move beyond consumption-driven remittances to investment-driven diaspora engagement”, Chukwu said.

Executive Director at Zenith Bank, Dr Temitope Fasoranti, said, “In the current environment, every dollar counts. Losing even $200–300 million a month in diaspora remittances would be a significant shock to Nigeria’s external balance. There have been calls to diversify our export base which is good but the government needs to also look at creating diaspora funds that will target housing, agriculture, or even renewable energy which can channel long term capital back home”

The CBN’s $1 billion monthly remittance target is not just a financial benchmark, it is a critical lifeline for the Nigerian economy at a time of macroeconomic fragility. But as global migration policies harden and remittance corridors become more expensive and complex, Nigeria faces a new set of external risks that require both nimble diplomacy and domestic resilience.

Whether the country can sustain and grow its diaspora inflows will depend on how effectively it can navigate these emerging global headwinds. For now, the road to $1 billion a month looks steeper than ever.

CBN’s $1bn monthly diaspora inflow target faces immigration threat

Sun

Related Topics:CBN diaspora inflow Featured Immigration

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Meet Jetour G700: The 904HP Luxury beast shaking SUV world

Published

7 hours ago

May 8, 2026

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Meet Jetour G700: The 904HP Luxury beast shaking SUV world

The battle for dominance in the premium SUV market just got fiercer as the Jetour G700 arrives with an outrageous 904-horsepower hybrid powertrain, futuristic luxury features and off-road capabilities designed to embarrass conventional rivals.

Far from being another luxury SUV, the G700 positions itself as a rolling statement of excess, power and cutting-edge engineering — a machine equally comfortable cruising through city boulevards or charging across unforgiving terrain.

At nearly 5.2 metres long, the G700 announces itself with unapologetic aggression.

Its boxy silhouette, towering stance, oversized grille and sharp matrix LED headlamps give it the presence of a military-grade explorer wrapped in executive styling.

But the real drama begins beneath the bodywork.

Powering the SUV is Jetour’s Kunpeng Super Hybrid CDM-O system, which combines a 2.0-litre turbocharged engine with dual electric motors to unleash a staggering 904 horsepower and 1,135Nm of torque.

Those numbers translate into astonishing performance for a vehicle of its size. The G700 rockets from 0 to 100km/h in just 4.6 seconds — territory usually reserved for elite supercars rather than heavyweight SUVs.

Despite its brutal acceleration, the G700 is engineered for endurance. It boasts a driving range of up to 1,400 kilometres, allowing long-distance adventures with fewer charging or refuelling stops.

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Jetour also ensures the vehicle is far more than a straight-line performer.

Its adaptive suspension system, triple differential locks and 970mm wading depth equip it for serious off-road punishment, from rocky trails to flood-prone roads. Adding to its arsenal is the eye-catching “Tank Turn” technology, enabling the SUV to rotate sharply in tight spaces like a military vehicle.

Inside, the G700 swaps rugged toughness for first-class indulgence.

A massive 35.4-inch 3K panoramic display dominates the cabin, creating a futuristic cockpit atmosphere, while premium Nappa leather massage seats deliver limousine-level comfort for occupants.

The luxury experience is amplified by an 18-speaker Lexicon sound system with Dolby Atmos, transforming the interior into a private concert hall on wheels.

Jetour pushes the innovation even further with a suite of unusual features aimed at adventure-focused buyers.

Certain editions come with rear turboprop assistance capable of generating additional thrust for escaping deep mud, while an onboard refrigerator drawer can cool drinks to -6°C or keep meals warm at 50°C.

An integrated oxygen supply system also supports driving at high altitudes, reinforcing the SUV’s long-distance expedition credentials.

Industry observers say the G700 signals Jetour’s intention to aggressively challenge established luxury SUV brands by combining electrified performance, premium comfort and hardcore off-road ability in one package.

The G700 is available in Nigeria through accredited dealerships including Elizade Nigeria Limited, New Era AutoVehicle Services Ltd, Kojo Motors, Germaine Auto Centre and Tab Autos Ltd, R.T. Briscoe and Mandilas Motors.

Meet Jetour G700: The 904HP Luxury beast shaking SUV world

Insurance

Lasaco Assurance Posts 81.5% Profit Surge in Q1 2026 Results

Published

1 day ago

May 7, 2026

Trends Admin

Lasaco Assurance Posts 81.5% Profit Surge in Q1 2026 Results

Lasaco Assurance Plc has begun the 2026 financial year on a strong note, posting an 81.5% increase in profit after tax in its unaudited Q1 2026 financial results, driven by improved underwriting performance, stronger investment returns, and enhanced operational efficiency. The company recorded a profit after tax of ₦2.36 billion, up from ₦1.30 billion in the same period of 2025, reflecting sustained momentum in its core insurance operations in Nigeria.

A key highlight of the performance was the sharp growth in insurance service results, which rose by 119.6% to ₦4.22 billion, compared to ₦1.92 billion in Q1 2025. The company attributed this growth to stronger risk selection processes, improved claims management efficiency, and a more profitable insurance portfolio structure, which helped enhance underwriting margins.

Lasaco Assurance also recorded significant growth in net insurance and investment results, which increased by 74.7% to ₦5.14 billion, up from ₦2.94 billion in the previous year. This performance underscores the company’s ability to balance income from insurance underwriting activities with returns from its investment portfolio, even amid a challenging economic environment.

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The company’s total assets rose by 16.6% to ₦46.20 billion, compared to ₦39.63 billion recorded in March 2025, reflecting steady balance sheet expansion. Cash and cash equivalents also grew by 24.5% to ₦18.45 billion, strengthening liquidity and improving the company’s capacity to meet claims obligations and operational needs. In addition, reinsurance contract assets increased by 34.9%, signalling higher risk-sharing arrangements and improved underwriting capacity.

A major financial highlight was the turnaround in retained earnings, which moved from a negative position of ₦573 million in December 2025 to a positive ₦1.55 billion in Q1 2026. This improvement reflects stronger earnings quality and reinforces shareholder confidence in the company’s long-term financial stability and growth outlook.

The company also reported an 81.5% increase in earnings per share (EPS), which rose to 21.29 kobo from 11.73 kobo, highlighting improved profitability and efficient capital utilisation.

Operating expenses increased by 30.3% to ₦1.81 billion, driven by planned investments in business expansion, technology, and operational improvements. Despite the rise in costs, revenue growth significantly outpaced expenditure, resulting in stronger overall profitability and improved margins.

The Q1 2026 results reflect Lasaco Assurance’s continued focus on product innovation, risk management, and customer service enhancement. With strong earnings growth, improved liquidity, and a healthier balance sheet, the company is positioned to sustain its momentum in Nigeria’s insurance sector performance outlook for 2026.

Lasaco Assurance Posts 81.5% Profit Surge in Q1 2026 Results

Business

BREAKING: Dangote Refinery Raises Petrol Price to ₦1,350 Per Litre

Published

2 days ago

May 6, 2026

Trends Admin

BREAKING: Dangote Refinery Raises Petrol Price to ₦1,350 Per Litre

The Dangote Refinery has implemented another upward adjustment in the ex-depot price of Premium Motor Spirit (PMS), increasing it to ₦1,350 per litre, according to confirmation from industry sources and Petroleumprice.ng.

The new adjustment represents a ₦75 increase from the previous ₦1,275 per litre, continuing a series of frequent price changes that have characterised Nigeria’s downstream petroleum market in recent weeks.

The revised price has reportedly been implemented across all loading depots, with marketers already adjusting their pricing templates in response to the new cost structure.

A senior industry official said the updated pricing has been activated across all gantries, adding that distribution channels have already reflected the new rate as supply conditions remain tight.

According to the official, marketers are quickly recalibrating their depot and retail prices to align with the latest adjustment, which reflects ongoing shifts in production and distribution costs.

The latest increase comes just days after the refinery raised its ex-depot price from ₦1,200 to ₦1,275 per litre, making it the second ₦75 hike within one week.

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Market observers say the rapid adjustments underscore the volatility currently shaping Nigeria’s deregulated fuel sector, where prices now respond directly to supply and demand dynamics.

Industry sources attributed the latest increase to a combination of factors, including fluctuations in global crude oil prices, foreign exchange pressures, and logistics costs associated with fuel distribution.

They also pointed to a temporary disruption in the issuance of pro forma invoices earlier in the week, which contributed to tighter supply conditions across the downstream market.

A senior official explained that the suspension of PFIs created short-term supply constraints, which, when combined with global oil market movements, led to the latest upward price revision.

Despite the recent increases, a senior Dangote Group official had earlier stated that the refinery has been subsidising petrol and diesel sales to stabilise supply within the Nigerian market.

Analysts, however, note that the refinery’s pricing pattern reflects a transitional phase in Nigeria’s downstream sector, where domestic refining is increasingly replacing imports but remains sensitive to international crude prices.

The latest increase is expected to translate into higher pump prices nationwide, as marketers adjust retail rates to reflect new depot costs.

Economists warn that sustained fuel price increases could further intensify inflationary pressures, particularly on transport fares, food distribution, and other essential goods and services.

Within the past month, Dangote Refinery has adjusted petrol prices multiple times, reflecting changes in crude sourcing costs, foreign exchange movements, and domestic supply conditions.

Market watchers say this volatility highlights the evolving nature of Nigeria’s deregulated petroleum market, where pricing is increasingly determined by global and local economic forces rather than fixed controls.