Nigeria, Egypt Lead as Africa Nets $95B in Remittances

Africa recorded over $95 billion in remittance inflows in 2024, with Nigeria, Egypt, and Morocco emerging as the top recipients, according to the 2025 State of Africa’s Infrastructure Report by the Africa Finance Corporation (AFC).

The inflow was nearly equivalent to the continent’s total foreign direct investment (FDI) for the year, highlighting the growing importance of diaspora remittances as a crucial and stable source of external finance for African economies.

The report noted that, beyond 2024, remittances have consistently outpaced FDI, portfolio investments, and official development assistance, making them one of the continent’s most reliable financial inflows.

Nigeria retained its position as a leading remittance destination, fuelled by a large and active diaspora population. The AFC described the increase in remittances as a turning point that offers a more structured and transparent bridge between African nations and offshore wealth, marking a shift from decades of unaccounted capital flight.

“In 2024, Africa received over $95 billion in remittances from its global diaspora—an amount roughly equivalent to total FDI inflows to the continent that year. The largest recipients were Egypt, Nigeria, and Morocco, followed by a growing number of mid-sized economies with substantial emigrant populations.

“Remittances have proven to be a stable and resilient source of external finance, often outperforming portfolio flows and official development assistance in terms of consistency,” the report stated.

Citing research by economists Léonce Ndikumana and James K. Boyce, the report revealed that Africa lost over $420 billion to capital flight between 1970 and 2004, mostly through informal and opaque channels. These losses, coupled with significant labour migration, eroded domestic investment capacity and widened the disconnect between African financial systems and offshore wealth.

The AFC report views the current remittance surge as a strategic opportunity to formalise diaspora engagement in national development plans. While a large proportion of remittances is used for household needs, the growth of trusted financial channels has opened doors for more structured diaspora investments.

One such mechanism is the diaspora bond. Countries like Ethiopia, Kenya, and Egypt have faced challenges with uptake due to weak regulatory frameworks. However, Nigeria’s $300 million diaspora bond issued in 2017 was fully subscribed, benefiting from clear terms, credible oversight, and attractive yields. The bond accounted for about 1.4% of Nigeria’s remittance inflows that year.

The report also referenced earlier pan-African initiatives, such as the African Diaspora Investment Fund and the proposed African Institute for Remittances. Although progress has been slow, the AFC notes that these efforts have laid the foundation for stronger diaspora engagement.

In Q1 2024, Nigeria recorded $282.61 million in direct diaspora remittances, representing a 6.28% decline from the $301.57 million recorded in the same period in 2023. The figures, based on data from the Central Bank of Nigeria, reflect transactions processed through international money transfer operators.

Monthly trends in 2024 showed varied performance:

• January: $138.56 million, up 75% from $79.19 million in January 2023.
• February: $39.15 million, down more than 53% from $83.76 million the previous year.
• March: $104.91 million, a 24% drop from $138.63 million in March 2023.

Additionally, in March 2025, the Chairman/CEO of the Nigerians in Diaspora Commission (NiDCOM), Hon. Abike Dabiri-Erewa, disclosed that Nigerians abroad had sent over $90 billion in remittances over the past five years in support of national development.

Nigeria also remained the top recipient of diaspora remittances in Sub-Saharan Africa in 2023, accounting for around 35% of total regional inflows. A World Bank report estimated that Nigeria received approximately $19.5 billion in remittances in 2023—ranking highest in the region.