Diaspora to the Rescue| Nigerians Abroad Send $20.93bn as Economy Struggles – CBN

In a statement that has sparked mixed reactions, the Central Bank of Nigeria (CBN) announced on Wednesday that personal remittance inflows surged to $20.93 billion in 2024—an 8.9% increase from the previous year. This comes as the country posted a surprising balance of payments surplus of $6.83 billion for the year, a sharp turnaround from deficits recorded in 2023 and 2022.

While the CBN, through its Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, hailed the figures as proof of renewed investor confidence and effective reforms, critics argue the numbers tell a different story—one that raises uncomfortable questions about who’s really sustaining the Nigerian economy.

A staggering $4.73 billion came through International Money Transfer Operators, a 43.5% jump from 2023, signaling that it is the Nigerian diaspora—not government initiatives—that continues to prop up the country’s finances.

“Is this really a success story, or just another sign that Nigerians are fleeing a broken system and sending lifelines back home?” one financial analyst asked, questioning the narrative of progress.

While non-oil exports rose 24.6% to $7.46 billion and petroleum imports fell, critics point to the alarming 42.3% drop in foreign direct investment, which slumped to just $1.08 billion—hardly a vote of confidence from the international business community.

Meanwhile, portfolio investment inflows surged by 106.5% to $13.35 billion, sparking concern that Nigeria may be relying too heavily on hot money rather than long-term economic sustainability.

The CBN also touted improved data transparency, with net errors and omissions dropping dramatically from $24.9 billion to $5.1 billion. But skeptics wonder whether this is a statistical clean-up or actual reform.

Even as external reserves rose by $6 billion to $40.19 billion, critics argue the government is leaning too heavily on remittances and speculative investment flows, with little focus on fixing the domestic economy.

CBN Governor Olayemi Cardoso called the numbers “evidence of effective policy implementation,” but on the streets, many Nigerians remain unconvinced—wondering if the so-called success is just smoke and mirrors, masking an economy still heavily reliant on its diaspora for survival.