Cardoso: FG considering US diaspora bond, targets $1bn monthly remittances

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), says the federal government is considering a diaspora bond in the United States next year and is targeting remittance inflows of $1 billion monthly. 

Cardoso spoke on Thursday in an interview with Reuters on the sidelines of the International Monetary Fund (IMF) and World Bank meetings in Washington, DC.

The CBN governor said Nigerians abroad are eager to invest and have already more than doubled the remittances they send home since the current government implemented substantial reforms in 2023.

As a result, Cardoso said a diaspora bond in the United States “could be on the horizon” in 2025.

“They really want to invest… beyond just financially,” Cardoso said.

“Our currency has now become extremely competitive and cheap. So they see the opportunity of taking positions in assets back home and in businesses back home.”

Cardoso said CBN’s efforts to restore investor confidence were successful, and that painful reforms are paying off.

The CBN governor said remittances hit $600 million in September, from $250 million a month in spring this year and authorities are targeting $1 billion a month.

“I would be surprised if we are not there by this time next year,” he said.

Cardoso said the weak naira could help long-drawn efforts to diversify the economy away from oil.

“Now that our currency is relatively competitive… there should be the opportunity for those who have relied so much on importation to now beef up the productive activity that has so greatly eluded us over these years,” he said.

The CBN governor said the apex bank would be “vigilant” in monitoring inflation and allowing economic data to drive interest rate decisions.

He also said policy consistency would attract longer-term foreign investor cash, adding that so far, investors were still testing the system.

“Only time can show that you can stay the course,” he said.

Cardoso said his meetings with investors, rating agencies and Nigerians abroad had provided “an element of validation”.

In April, the federal government said it was considering the issuance of a diaspora bond to boost remittances.