Economy
CBN Laments Diversion of Diaspora Remittances to Unregulated Markets
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has lamented that diaspora remittances entering the country do not enter the official market but instead find their way to unregulated markets.
This was made known by the acting Governor of CBN, Mr Folashodun Shonubi, while delivering a Distinguished Personality lecture titled: Diaspora Remittances and Nigeria Economic Development for members of Executive Intelligence Management Course (EIMC) 16 at the National Institute for Security Studies, Abuja.
Mr Shonubi explained that many diaspora remittances came to Nigeria in dollars and were not documented officially, as they ended up in the parallel market and the peer-to-peer (P2P) segment.
“With those remittances, the Dollars have come in. We know the dollars have come in, but we don’t see them in the official system. So, they must be going somewhere and somewhere.
“The challenge with the black market, unofficial market or parallel market or whatever name you want to call it, is that it is not regulated, and it becomes an easy place to have criminal activities.
“We investigate bankers, not just bankers, anybody who has committed an offence; the first thing they want to do is to run to the black markets, change it to the Dollars because it is less money to carry around.
“Some of the funding in the black markets are actually from diaspora remittances. That’s why it is important we need to know a lot of what’s going on there. We can’t play the sentiment game.
“If we don’t understand the dynamics, we usually go with the literature, which does not necessarily work for us.,’ he said.
Speaking of efforts to staunch the continued migration of remittances to these unregulated markets, Mr Shonubi said it would deepen its collaborations with banks and other institutions in the system.
“We intend to use more of the banking system too, sending money to Sub-Saharan Africa costs the highest because we don’t have masses. It would be helpful if we could work together to identify these channels.
“We just want the flows into the proper channels, there we can get maximum benefits to grow the economy. We talk about black markets, which also create problems.”
He added that the, “Management of foreign exchange market and the efficacy of our policies to manage the exchange rate becomes difficult due to the insignificance of our diaspora remittances which are going to other markets.”
He also tasked individuals to be upright when dealing in the market, saying many use smart moves to make profits and create unbalance.
“Since we started the I&E window, we found out that some people would deliberately wait until the last minute and do one transaction of $5,000, and that becomes the closing rate.
“We can’t do without diaspora remittances. For many countries, that’s their main source of income,” he lamented.
By Dipo Olowookere
Barbican Capital Limited, a financial services firm established by Honeywell Group, owned by a Nigerian businessman, Mr Oba Otudeko, has sold off its stake in First Holding Company (First HoldCo), formerly FBN Holdings, the parent company of First Bank of Nigeria Limited.
According to information from its website, “Barbican Capital holds a 15.1 per cent stake in Africa’s premier financial services holding company.”
In a notice to the Nigerian Exchange (NGX) Limited on Friday, First HoldCo disclosed that on Wednesday, July 16, 2025, Barbican Capital sold a total of 6,314,116,229 units of its shares at a unit price of N31.00, amounting to about N195.7 billion.
It was reported that the shares were sold to another billionaire businessman, Mr Femi Otedola, but fresh information suggests that they were acquired by the federal government through a trustee.
Mr Otedola and Mr Otudeko had been at loggerheads over the control of the financial institution, which led to a bitter boardroom crisis.
With the latest development, Mr Otudeko has exited the field for his rival, who controls about 15 per cent stake in First HoldCo.
With a long tradition of investing in financial services across Africa, Barbican Capital has played a significant role in the sector through various companies.
It once invested in Ecobank Transnational Incorpotated but still has stakes in pensions and investment banking companies.
On his part, with his background as a banker and one of the earliest qualified “professional bankers” in Nigeria, Mr Otudeko got into First HoldCo in 1994 after seeing value in the firm and its potential for transformation and growth.
That initial investment during the government’s privatisation drive of the early 90s started a journey that saw him grow the investment and subsequently join the board of the banking subsidiary in 1997, before becoming the board chairman in 2010. Two years later, he was the chairman of First HoldCo board and left the position 2021.
Millions of Nigerians who depend on cooperative societies for credit and savings are at growing risk of financial setbacks, as manual dues collection methods remain the norm across the country. A 2024 study from Nnamdi Azikiwe University (source) revealed that over 70% of cooperatives still rely on handwritten ledgers and informal cash contributions—leaving them exposed to defaults, disputes, and operational breakdowns. Even outright theft is not uncommon.
Cooperatives are vital financial safety nets for millions of Nigerians, especially in underbanked communities. But as default rates rise and reconciliation periods become chaotic, a growing number of cooperatives are reevaluating how they operate—and turning to technology for help.
“We use notebooks and WhatsApp to track payments,” says Iyabo Adebayo, treasurer of a 70-member women’s cooperative in Ibadan. “If someone misses their payment, it takes me days to follow up. Sometimes I just give up.”
This challenge isn’t isolated. The same 2024 study documented how manual tracking of dues and loans in staff cooperatives significantly reduced liquidity and increased the rate of defaults. During peak periods like June—when many cooperatives conduct financial audits—the consequences of poor tracking become more severe.
Recognising this pattern, a growing number of cooperatives are now implementing mandate-based systems like PaywithAccount, a direct debit payment tool developed by OnePipe. The platform enables members to authorise automated deductions for recurring dues, removing friction, improving predictability, and reducing administrative overhead.
“The moment we switched to a structured mandate system, collections became smoother,” says Emeka Chukwu, who oversees a transport workers’ cooperative in Enugu. “It gives us peace of mind. No more excuses.”
Speaking on the trend, Ope Adeoye, CEO of OnePipe, said this trend portends a deeper systemic issue. “When treasurers spend more time chasing payments than managing funds, the model begins to collapse. It’s encouraging to see more cooperatives adopting direct debit tools like PaywithAccount. The increase in uptake reflects a real need—people want structure they can trust, especially in these tough economic times.”
Industry experts believe such solutions could help stabilize grassroots finance. “When dues are predictable, planning becomes possible,” says Temi Adedeji, a digital finance consultant. “It means more loans issued, better savings discipline, and less stress for treasurers.”
As Nigeria’s cooperatives approach their mid-year audits and dividend planning cycles, the need for more resilient, automated collection systems is becoming harder to ignore.
Following the success of its debut season, Stanbic IBTC Asset Management, a subsidiary of Stanbic IBTC Holdings PLC, announces the return of the InvestBeta Game Show, with registration officially open.
The second season of the InvestBeta show builds on the first edition, aimed at equipping young Nigerians with real-world financial skills in a fun, relatable, and competitive format. The show’s first season, which aired in 2024, captured the attention of Gen-Z viewers across the country, blending entertainment with investment education in a way that had never been done before. With positive feedback, it proved that young Nigerians are ready to learn how to grow their money, and all they need is the right platform.
The new season reflects the Group’s broader youth-focused mission through Beyond Dreams, its dynamic community created for Nigerians aged 18–30. The community aims to help young people turn their aspirations into reality through secure, timely and smart investment choices. Since its inception, Beyond Dreams has grown to a network of over 90,000 young members, generated 2,100+ new investment accounts, and continues to position the Group as a trusted partner in the financial futures of Nigeria’s youth.
Busola Jejelowo, Chief Executive, Stanbic IBTC Asset Management noted InvestBeta reflects our deep commitment to financial education. She said, “We understand that today’s young people want more than just advice but practical, hands-on experience. This is why the InvestBeta game show is here to change how young Nigerians see money and what they can do with it.”
Entries are now open to eligible young Nigerians who want to be part of Season 2. Registration is free via the official link: https://bit.ly/StanbicIBTCInvestBeta. Successful applicants will be selected to compete in a series of challenges designed to test their knowledge, strategy, and creativity around real-life financial scenarios.
And for those who missed the first season, full episodes are available to watch on Stanbic IBTC’s official YouTube channel. From quick financial questions to investment tips, Season 1 offered real lessons with real impact, and Season 2 is gearing up to raise the bar.
To stay in the loop, follow @beyonddreamsng across all social media platforms and be part of the countdown to the second season of Nigeria’s most engaging youth-focused investment competition.
If you are 18 to 26, curious about how money works, and ready to build your future, this is your sign.
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