Nigeria is exploring the issuance of a diaspora bond in the United States next year, aiming to increase remittance inflows to $1 billion monthly, according to Central Bank Governor Olayemi Cardoso.
Speaking during the International Monetary Fund (IMF) and World Bank meetings in Washington, D.C., Cardoso highlighted the increasing interest of Nigerians abroad in supporting the local economy. The Central Bank reports that remittances have doubled since the current administration implemented key economic reforms last year.
The proposed bond would specifically target Nigerians in the United States, who represent the largest segment of Nigeria’s diaspora. Cardoso noted that the naira’s recent depreciation has made investments in Nigerian assets more appealing for diaspora investors, especially as they seek opportunities beyond traditional financial channels.
Challenges since President Bola Tinubu took office, such as a backlog in foreign exchange payments and high fuel subsidy costs, have shaped this new approach to strengthening Nigeria’s economy. Appointed in September 2023, Cardoso succeeded former Governor Godwin Emefiele, who faces legal challenges tied to fraud and corruption allegations. Despite these hurdles, remittance flows have grown significantly, from $250 million per month at the start of the year to $600 million in September, with the Central Bank now aiming for the $1 billion target.
Nigeria’s foreign reserves currently exceed $40 billion, which Cardoso sees as a chance to diversify the economy. “With a more competitive naira, this is an opportunity for businesses that have historically relied on imports to develop local production,” he explained.
The Central Bank plans to closely monitor inflation and let economic trends inform interest rate policies, with Cardoso emphasizing consistency as key to attracting sustained foreign investment. He noted that investors are still evaluating the evolving economic landscape. “Only time will prove the durability of these reforms,” he said.
Cardoso expressed optimism that recent engagements with investors, rating agencies, and the Nigerian diaspora affirm the government’s reform strategies. He highlighted the importance of maintaining public understanding and support for these efforts, assuring Nigerians that the country is moving in a positive direction.
