Diaspora (Commonwealth Union) _Nigeria’s Central Bank Governor, Olayemi Cardoso, revealed that the nation is evaluating the launch of a U.S.-based diaspora bond, aiming to bolster remittance flows to reach $1 billion per month. Cardoso disclosed this strategy during an interview with Reuters at the IMF/World Bank autumn meetings in Washington, D.C., highlighting the surge in remittances since Nigeria’s current administration began extensive reforms last year.
Cardoso emphasized that Nigerians abroad are highly motivated to invest back home, especially as the naira has become more competitive, creating appealing opportunities for diaspora investors in Nigerian assets and businesses. He suggested that a U.S.-based diaspora bond, where a significant number of Nigerians reside, could become a reality by 2025.
Since President Bola Tinubu took office, Nigeria has been tackling several economic hurdles, including managing foreign exchange payment backlogs and addressing high fuel subsidies. The resulting policy changes have doubled remittances, which rose to $600 million monthly from an earlier average of $250 million. With these upward trends, Cardoso is optimistic about reaching the $1 billion target, saying, “I would be surprised if we are not there by this time next year.”
In August, Nigeria launched its first domestic dollar-denominated bond, with a minimum subscription of $1,000 per unit, offering an opportunity for Nigerians to invest in a stable, foreign currency-backed asset. Overwhelming interest in the bond surpassed its $500 million target, collecting over $900 million, resulting in a subscription rate exceeding 180 percent.
Finance Minister Wale Edun, who was also present at the Washington meetings, noted that the bond’s success reflects a positive outlook among investors toward Nigeria’s economic stability and growth prospects. Despite the International Monetary Fund (IMF) advising Nigeria against issuing dollar bonds domestically, Edun highlighted that the government proceeded with the issuance, valuing the IMF’s perspective but choosing a path that aligned with its fiscal objectives.
In light of these financial initiatives, Nigeria is working to strengthen its engagement with the diaspora and maximize the impact of their contributions on the economy. The diaspora bond and domestic dollar bond initiatives mark steps toward enhancing Nigeria’s financial infrastructure and increasing investor confidence as the nation addresses economic challenges and seeks sustainable growth.
