If the bill is passed, the U.S would have succeeded in installing a new law that will help it curb both illegal immigration and drug cartel activity. However, it could threaten Nigerian diaspora nonprofits and faith-based groups operating in the U.S. that support development, education, and aid back home.

Challenges For Nigeria on 5% Remitance Fee

Non-U.S. citizen Nigerians using money transfer services will be most affected by the bill. An estimated 40% of non-U.S. citizens (e.g., green card holders, visa holders), ~190,400 of the 500, 000 Nigerians working and residing in the U.S. are non-citizens.

Studies show non-citizen immigrants often remit more frequently and higher amounts than naturalised citizens, due to stronger immediate family ties and responsibilities back home.

More so, based on public data (World Bank) and behavioural trends, it is estimated that approximately 46% of the $3.5 billion in 2023 remittances from Nigerians in the U.S. — about $1.62 billion — likely came from non-U.S. citizen Nigerians.

Nigeria is Africa’s top recipient of diaspora remittances. Over 40% of Nigerians receiving remittances rely on them for basic needs like food, education, and healthcare.

The bill, which may reach the full U.S. House before May 26, 2025, has the potential to discourage frequent transfers or reduce the amount sent.