A 36% decline in foreign transfers signals shifting FX dynamics as reforms boost diaspora inflows and reshape cross-border payments…..
Nigeria recorded a significant slowdown in money sent abroad in 2025, as outbound remittances fell by N689.55 million year-on-year, highlighting a notable shift in the country’s foreign exchange landscape.
Fresh data released on Tuesday shows that total international payment outflows dropped from N1.91 billion in 2024 to N1.22 billion in 2025, a steep 36.09 per cent decline. The figures point to a tightening in cross-border transfers, even as inflows from Nigerians abroad surged during the same period.
Remittance outflows — funds sent by individuals, businesses, and organisations to recipients overseas — are often used for purposes such as tuition, imports, and family support. A contraction of this scale suggests changing economic conditions, policy impacts, or both.
A closer look at the numbers reveals that 2024 was marked by sharp spikes in outbound payments. Monthly outflows surged in May (N365.44 million), June (N270.52 million), and September (N230.30 million), with those three months alone contributing more than N866 million — nearly half of the annual total.
By contrast, 2025 painted a more restrained picture. No single month crossed the N200 million mark, with December recording the highest outflow at N200.31 million. November and September followed at N166.41 million and N149.49 million respectively, reflecting a more moderate and controlled pattern throughout the year.
The monthly trend in 2025 was uneven but generally subdued. Outflows rose from N54.44 million in January to N125.59 million in February, before easing slightly in March. April saw a sharp dip to N37.75 million — one of the lowest points of the year.
Mid-year figures showed mild fluctuations, with May and June posting modest increases before another dip in July. Activity picked up again in August and September, only to fall sharply in October to N33.02 million — the lowest monthly outflow recorded in 2025. The year, however, ended on a strong note, as November and December combined accounted for nearly a third of total annual outflows.
While outbound transfers declined, the opposite trend was observed on the inflow side. Monthly remittance inflows reportedly climbed to about $600 million in 2025, effectively tripling previous levels. This divergence suggests that Nigeria is strengthening its net remittance position, with more foreign currency entering the economy than leaving it.
The development comes amid a wave of policy changes aimed at improving transparency, boosting confidence, and encouraging the use of formal remittance channels. Regulatory adjustments have expanded participation in the remittance space, eased operational constraints, and introduced new systems to attract diaspora funds.
Among these measures is the rollout of a platform that allows Nigerians living abroad to obtain their Bank Verification Number remotely, eliminating the need for physical presence. Authorities say the initiative is part of a broader push to deepen financial inclusion and unlock diaspora engagement.
There have also been efforts to improve oversight and traceability of remittance flows, including new requirements for operators to maintain local settlement accounts. These steps are designed to strengthen monitoring while ensuring a more stable and transparent foreign exchange market.
Despite the overall decline in 2025, early data for 2026 suggests a mixed outlook. In January, outbound remittances rose to N107.47 million — nearly double the N54.44 million recorded in the same month a year earlier. However, the figure represents a sharp drop from December’s N200.31 million, indicating continued volatility.
Even with the rebound, current levels remain below the peaks recorded in earlier periods, suggesting that outbound remittances have yet to fully recover.
For an economy long dependent on oil revenues, remittances continue to play a critical role supporting household consumption, funding investments, and supplying much-needed foreign exchange. The latest figures point to an evolving remittance landscape, one increasingly shaped by policy direction, market confidence, and the growing influence of the Nigerian diaspora.
