Nigeria recorded a significant decline in remittance outflows in 2025, with total international payments falling by 36.09% to N1.22 billion from N1.91 billion in 2024, according to data from the Central Bank of Nigeria (CBN).
The sharp reduction reflects improved economic conditions and the impact of ongoing reforms aimed at stabilising the foreign exchange market and strengthening domestic financial systems.
A breakdown of the figures shows that outflows were notably lower and more stable throughout 2025 compared with the previous year. No single month in 2025 exceeded N200.31 million, with the highest outflow recorded in December at N200.31 million, followed by November at N166.41 million and September at N149.49 million. The last two months of the year accounted for over 29% of the annual total.
In contrast, 2024 saw more volatile and elevated outflows, with peaks in May (N365.44 million), June (N270.52 million), and September (N230.30 million). These three months alone contributed over N866 million to the yearly total.
The lowest monthly outflow in 2025 was recorded in October at N33.02 million, while January opened the year at N54.44 million before rising to N125.59 million in February.
For January 2026, remittance outflows stood at N107.47 million — a 97.4% increase from the N54.44 million recorded in January 2025, but a sharp 46.3% decline from December 2025’s N200.31 million.
The CBN data highlights a broader trend of moderated cross-border payment flows, which analysts link to enhanced foreign exchange management, tighter regulatory oversight, and greater confidence in the domestic economy.
Remittances play a vital role in supporting household consumption, savings, investment, and foreign exchange supply. In recent years, they have gained prominence as Nigeria seeks to diversify its external earnings away from volatile oil revenues.
The decline in outflows suggests that more funds are being retained within the economy or channelled through formal banking systems, potentially boosting local liquidity and reducing pressure on the foreign exchange market.
Economists note that sustained reforms, including exchange rate unification and improved settlement mechanisms, have helped create a more predictable environment for both inbound and outbound remittances.
As Nigeria continues to strengthen its macroeconomic fundamentals, the reduction in remittance outflows could signal growing domestic retention of earnings and a gradual shift toward a more balanced external payments position.
The CBN is expected to monitor these trends closely as part of its broader strategy to enhance financial stability and support long-term economic growth.
