Nigeria’s diaspora remittance inflows are estimated to rise to about $23 billion in 2026, indicating the country’s position as the largest recipient of remittances in Sub-Saharan Africa.

The development also ranked the country among the top 10 remittance-receiving countries globally, according to the Agusto & Co 2026 Diaspora Remittance Report.

The report said Nigeria’s remittance market is undergoing significant transformation as exchange-rate reforms, improved foreign-exchange transparency, rising digital adoption and the rapid expansion of fintech-enabled money transfer services reshape the way Nigerians living abroad send money home.

The estimated $23 billion inflow underscored the growing importance of Nigerians in the diaspora to the country’s foreign exchange market and household economy, with remittances supporting consumption, education, healthcare, housing, investments and small business activities.

The report noted that the changing foreign exchange environment, coupled with the increasing use of digital financial platforms, is altering customer behaviour and intensifying competition among remittance service providers.

Nigerians abroad are increasingly looking beyond traditional considerations when choosing money-transfer providers, with transaction costs, exchange rates, speed of delivery, reliability, convenience and accessibility becoming important factors in determining their preferred channels.

To understand the changing patterns better, the report conducted a primary survey of 163 Nigerian-born adults living abroad, examining their remittance frequency, preferred transfer channels, provider selection criteria, transaction costs, turnaround times and the major challenges encountered when sending money to Nigeria.

The survey provided insight into the changing expectations of Nigerians in the diaspora at a time when the remittance market is moving rapidly from conventional money-transfer services towards a more digital and technology-driven ecosystem.

The expansion of fintech platforms has made it possible for remitters to initiate transactions from their mobile phones and other digital devices, reducing dependence on physical outlets and providing customers with greater choice in how and when they transfer funds.

The growing competition in the sector is expected to place greater pressure on service providers to improve transaction speed, reduce costs, offer competitive exchange rates and strengthen the reliability of their platforms.

In the remittance market, digital technology and fintech innovation are creating greater competition and giving Nigerians abroad more options for transferring money home.

The ability of regulators and industry operators to sustain these reforms, improve transparency and encourage further investment will be critical to ensuring that the benefits of these changes are sustained.

With diaspora remittances estimated at $23 billion in 2026, the performance of the remittance industry will remain important to Nigeria’s foreign exchange position.

It added that the developments point to an economy gradually moving towards greater reliance on formal foreign exchange inflows and domestic production, with technology, private investment and market reforms playing an increasingly important role in that transition.