Every year, Nigerians living abroad send more money home than Nigeria earns from several of its biggest export industries combined. In 2025, that number was $21.8 billion. Here’s what that figure actually means — for the economy, and for the family on the receiving end of a transfer.
Explain it like I’m 5
Imagine your cousin moved to London to work, and every month he sends some of his salary back home to help with school fees and food. Now imagine millions of Nigerian families doing the exact same thing, all at once, every month, from countries all over the world. Add up every single one of those transfers for a whole year, and you get $21.8 billion — more money than most entire industries in Nigeria bring in. That’s what "diaspora remittances" means: it’s just millions of families helping each other, counted all together.
The News
Nigeria’s diaspora remittances stabilised at $21.8 billion in 2025, according to Central Bank of Nigeria (CBN) data — only marginally below the amount recorded in 2024, despite tighter immigration policies in major destination countries and rising global transfer costs.
The Numbers
- 2025 total: $21.8 billion (CBN data)
- 2024 total: roughly flat year-on-year
- Nigeria’s share of Sub-Saharan Africa’s remittances: more than 35% — the single largest recipient in the region (World Bank data)
- Cost of sending money to Sub-Saharan Africa: 8.46% on average (Q3 2025) — well above the global average of 6.36% (World Bank, Remittance Prices Worldwide)
That last number is easy to miss, but it matters most to the person actually sending the money: for every $100 sent home, roughly $8.46 is lost to fees on average before it even reaches Sub-Saharan Africa — more than a dollar extra compared to the global average.
The Explanation
Remittances have held roughly steady even as the naira has been volatile and life abroad has gotten more expensive for many Nigerians, because family obligations don’t pause for exchange rates. What’s changed is how that money moves: fintech transfer apps have been taking share from slower, pricier traditional channels, partly because every percentage point in fees is real money out of a family’s pocket.
The Impact
- For Nigeria’s economy: remittances are a major source of foreign exchange, separate from oil revenue, exports or foreign investment, and they land directly in household hands rather than passing through government budgets first.
- For receiving families: remittances often cover essentials — school fees, rent, medical bills, small business capital — rather than discretionary spending.
- For senders: the 8.46% average transfer cost to the region means the choice of app or service you use to send money home has a real, measurable cost.
A Real-Life Example
If you send $200 home every month through a service charging the regional average of 8.46%, you’re losing about $16.92 in fees every single month. Over a year, that’s roughly $203 — essentially an extra month’s transfer lost entirely to fees. Comparing providers before you send matters, because the difference between a cheap and an expensive option can be one whole "free" transfer a year.
Your Options
- Compare remittance providers before you commit — fees and exchange-rate markups vary significantly between banks, money transfer operators and fintech apps like Wise, WorldRemit and Lemfi.
- Watch the exchange rate margin, not just the headline fee — some providers advertise "no fee" but build their cost into a worse exchange rate.
- If you send regularly, small savings compound — see the real-life example above.
We’re planning a remittance cost comparison tool in Money Tools — tell us what you’d want it to include.
What to Watch
The World Bank has flagged Sub-Saharan Africa as the most expensive region in the world to send money to, and reducing that cost is a stated global development goal. Watch for new fintech entrants and CBN policy on diaspora remittance channels — increased competition tends to push fees down over time. For more on financial life across borders, see our full Money Abroad section.
Sources
- Diaspora remittances stabilises at $21.8bn in 2025 amid global pressures — Vanguard
- Nigeria’s Diaspora Remittances Hold Steady At $21.8bn In 2025 — Brand Spur
- At $19.5bn, Nigeria Accounted for 35% of Sub-Saharan Africa’s Diaspora Remittance — World Bank data via AllAfrica
- Nigeria’s $21B Remittance Market in 2025 — Makreo
- World Bank, Remittance Prices Worldwide report, Q3 2025 (regional cost data)
This article explains published economic data and is not financial advice — see our Disclaimer. Figures are as of the sources’ publication dates and may change; always compare current rates before sending money.
FAQ
Why do remittance fees matter if I’m only sending a small amount?
Fees are usually charged as a percentage, so they scale with the amount you send — a high percentage fee costs you proportionally the same whether you send $50 or $500. Over many transfers a year, even a few percentage points add up.
Is $21.8 billion a lot for Nigeria’s economy?
Yes — it’s one of Nigeria’s largest single sources of foreign exchange, larger than many individual export categories, and it goes directly to households rather than government revenue.
Are fintech apps always cheaper than banks for sending money to Nigeria?
Not always, but they’re often more competitive because they typically have lower overheads than traditional banks and money transfer operators. Always compare the total cost — transfer fee plus exchange-rate margin — rather than assuming.
