Overseas money transfers from expatriates hold steady at $21.8 billion in 2025 despite international economic strain

Nigeria's diaspora remittances remained steady at $21.8 billion in 2025, defying global economic headwinds, stricter immigration policies in major economies, and rising transfer costs across Sub-Saharan Africa, according to data from the Central Bank of Nigeria's Quarterly Statistical Bulletin for the fourth quarter of 2025.

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The $21.806 billion remittance inflow in 2025 was nearly identical to the $21.811 billion recorded in 2024, indicating a stable trend, as reported by Vanguard's analysis of the Central Bank of Nigeria's data.

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A strong rebound in remittances occurred in 2024, with a 13.16 percent surge to $21.81 billion from $19.27 billion in 2023, and this stability has continued into 2025, with remittances rising steadily throughout the year.

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Quarterly analysis revealed that remittances increased from $5.122 billion in the first quarter of 2025 to $5.72 billion in the fourth quarter, demonstrating sustained support from Nigerians abroad despite weak global economic conditions.

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This stability in remittances marks a significant shift from the volatility experienced during the COVID-19 pandemic, when annual inflows plummeted to as low as $17 billion.

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Sub-Saharan Africa remains the most expensive region globally for remittance transfers, with an average cost of 8.46 percent, according to the World Bank's Remittance Prices Worldwide report for the third quarter of 2025.

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The global average for remittance transfer costs stands at 6.36 percent, significantly lower than the average cost for Sub-Saharan Africa, highlighting the region's high transfer fees.

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Banks are the most expensive remittance channels worldwide, with an average fee of 14.99 percent, while digital remittance services and fintech operators continue to reduce transfer charges, the World Bank report noted.

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Traditional banking channels remain costly, limiting the benefits to recipients in developing economies, despite efforts by digital remittance services and fintech operators to lower transfer charges, according to the World Bank.

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The Middle East, North Africa, Afghanistan, and Pakistan region has emerged as the cheapest remittance destination globally, with an average transfer cost of 5.11 percent, surpassing South Asia, the World Bank report added.