The Central Bank of Nigeria has reported a remarkable surge in remittance inflows, which reached $553 million in July 2024.
This represents a staggering 130% increase compared to the same period in 2023, marking the highest monthly inflow on record.
This significant growth reflects the CBN’s concerted efforts to enhance liquidity within Nigeria’s foreign exchange market.
According to The PUNCH, in a statement released by the apex bank’s Acting Director of Corporate Communications, Hakama Ali, on Tuesday, the substantial rise in remittance inflows is largely attributed to strategic policy measures implemented by the CBN.
These policies are designed to strengthen the nation’s foreign exchange reserves and stabilize the market, particularly through the increased participation of International Money Transfer Operators.
“The CBN has reported a significant increase in remittance inflows, reaching $553 million in July 2024, a 130 per cent increase from the corresponding period in 2023,” the statement highlighted. It also noted that “this figure represents the highest monthly total inflows on record and reflects ongoing efforts by the CBN to enhance liquidity in Nigeria’s foreign exchange market.”
The CBN elaborated that the impressive growth in remittance receipts is a direct outcome of its proactive measures, which include the issuance of new licenses to IMTOs, the adoption of a willing buyer-willing seller exchange model, and ensuring IMTOs have timely access to naira liquidity.
These initiatives have been crucial in reinforcing the inflow of diaspora remittances, which serve as a vital source of foreign exchange, supplementing both foreign direct investment and portfolio investments in Nigeria.
“Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments,” the statement reiterated. The CBN further emphasized that its strategies are aimed at doubling formal remittance receipts within a year, aligning with its broader goal of fostering a stable and inclusive financial system.
The statement continued, “The increase in remittances is a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.”
Additionally, CBN’s announcement comes on the heels of recent data from the National Bureau of Statistics, which indicated that Nigeria’s year-on-year headline inflation rate declined in July 2024, marking the first drop in 19 months.
The CBN attributed this development to its stringent monetary policy tightening measures, which are beginning to yield positive results.
Looking ahead, the CBN stated that it expects these efforts to continue contributing to the stabilization of the foreign exchange market.
The bank assured that it would remain vigilant, monitoring market conditions closely and adjusting its policies as needed to further encourage remittance flows into the country.
“The CBN anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market. The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria,” the statement concluded.
