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

Electric Mobility Leader, Spiro, Selected for 2025 Regional Platforms for Climate Projects Pipeline

Spiro, a pioneering Pan-African electric mobility company driving sustainable transportation across the continent, has been selected for the prestigious 2025 Regional Platforms for Climate Projects (RPCP) Pipeline.

The RPCP is an initiative under the leadership of the High-Level Champions, designed to mobilize capital for climate ventures and projects across developing countries and emerging markets.

Spiro is the largest electric mobility company in Africa operates the largest battery swapping infrastructure in eight countries in Africa.

The firm says it intends to transform the African economies through substitution of expensive imported fossil fuel-based transportation into affordable, and accessible electric mobility solutions locally made in Africa, by Africans, for Africa end the world.

A statement by the firm says this recognition highlights Spiro’s position as a leading climate leader, delivering cutting-edge, high-impact solutions that accelerate Africa’s transition to a low-carbon, sustainable future in line with the Sustainable Development Goals (SDGs).

Founded in 2022, Spiro operates a vertically integrated platform that scales electric two-wheel mobility across eight African countries: Benin, Togo, Nigeria, Kenya, Uganda, Rwanda, Cameroon, and Tanzania.

The company’s comprehensive business model encompasses four key revenue streams: electric bike sales through distribution partners and financiers; battery-as-a-service subscriptions supported by a rapidly expanding network of swap stations; after-sales services including spare parts and maintenance; and data monetization via licensing and analytics.

Spiro has deployed over 35,000 electric motorbikes and facilitated more than 20 million battery swaps, enabling over 500 million kilometres of CO₂-free travel and helping to avoid approximately 30,000 tons of carbon emissions.

Beyond its environmental impact, Spiro is driving significant economic and social benefits.

The company has created over 1,000 direct and indirect manufacturing jobs across its facilities in Kenya, Uganda, Rwanda, and Nigeria, with women representing more than 40% of the workforce.

Additionally, the Spiro Academy plays a pivotal role in training and upskilling local talent, supporting transitions into medium- and high-skilled employment opportunities.

Financially, Spiro’s growth has been robust, generating USD 23 million in revenue in 2024 and projecting a tenfold increase to USD 200 million in 2025.

To support its ambitious expansion plans, Spiro is currently raising USD 50 million in Series A funding to accelerate market growth, scale operations, and invest in research, development, and technological innovation.

The company has already secured USD 120 million in equity and USD 23 million in debt financing.

As part of the RPCP Pipeline, Spiro will gain valuable exposure at prominent climate-focused events, be featured in curated publications by the Climate Champions Team and partners and access a broad network of global climate stakeholders to foster collaboration and amplify impact.

This far, Spiro has achieved over half a billion kms of CO2 free travel, crossed 20 million battery swaps and operated over 600 battery swapping stations with more than 35,000 motor bikes in circulation.

Through its expanding regional production network and upcoming facilities in Uganda, Kenya, Nigeria, and Rwanda, Spiro is committed to deliver affordable, locally manufactured electric mobility solutions at scale across Africa.

The Climate High-Level Champions (HLCs) work to mobilize ambitious climate action from businesses, cities, regions, and financial institutions to support governments in achieving the goals of the Paris Agreement.

By driving partnerships, showcasing transformative solutions, and prioritizing support for vulnerable communities, the HLCs help turn ideas into impact – cleaner air, better jobs, safer homes, and a healthier world for all.

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