Korede Abdullah in Lagos
The Central Bank of Nigeria (CBN) has taken a bold steps to tap into the economic potential of Nigeria’s diaspora community, with the goal of boosting the country’s economic growth.
Recently, the CBN led a team of key stakeholders, including the Nigeria Inter-Bank Settlement System (NIBSS), major banks, and International Money Transfer Operators (IMTOs), to engage with the diaspora community in Houston, Texas.
At the forum, titled “Optimizing Remittances to Nigeria: A Vision for the Future,” Deputy Governor Muhammad Sani Abdullahi emphasized the CBN’s commitment to strengthening macroeconomic fundamentals and creating an enabling environment for the private sector to thrive.
He reiterated the CBN Governor Olayemi Cardoso’s goal to double the volume of capital inflows and diaspora remittances to Nigeria.
The forum highlighted the importance of shifting the perception of remittances from a source of consumption to a tool for investment.
Also speaking, the CBN Deputy Governor (Financial System Stability), Philip Ikeazor noted that remittances could play a transformative role in Nigeria’s development if channelled effectively into productive investments.
Industry leaders, including Dr. Oliver Alawuba of United Bank for Africa (UBA) and Nneka Onyeali-Ikpe of Fidelity Bank, stressed the need for collaboration among banks, regulators, fintechs, and the broader ecosystem to unlock the total value of remittances.
They identified high costs and limited access to financial services as major challenges faced by diaspora members.
Some of the key solutions identified are in the area of collaboration between banks and fintechs to reduce costs and improve access to remittances.
Tobust KYC systems was looked into to instil confidence and trust in the remittance system as well as greater concessions for diaspora customers to make remittances more affordable.
Also, the area of reducing Nigeria’s risk status to lower fees and make remittances more affordable was considered.
With remittances averaging $20.5 billion annually over the past decade, according to the World Bank, the CBN aims to shift the approach from immediate consumption to long-term investments that drive economic growth.
This strategic move is part of Governor Cardoso’s focus on strengthening ties with Nigerians abroad, recognizing the diaspora’s critical role in shaping Nigeria’s economic future.
As the CBN continues to engage with the diaspora community, the country’s economic growth prospects are poised to benefit from this renewed partnership.
