This study explores empirically, the effect of formal remittances received and its interaction with official exchange rate on informal remittance channels in Nigeria during the period 2004-2022. Using autoregressive distributed lag (ARDL) model approach, co-integration, and bounds tests, it was revealed that in both long and short run official exchange rate interacted with personal remittances received showed positive statistical significant relationship with informal remittance. Also, access to commercial bank branches (per 100,000 adults) was found to have a positive influence on informal remittances. As such to reduce informal remittance, the Nigerian government should make more effort to bridge the gap between official exchange rate and black market naira rates. Nigerian financial institutions should expand their geographical footprint by focusing on agent banking network expansion, especially in areas with a low presence of financial institutions, i.e., by opening agent locations in under-served areas.