The Central Bank of Nigeria (CBN) reported a large increase in remittance inflows, hitting $553 million in July 2024, up 130 percent from the same month in 2023.
The Apex Bank’s Ag. Director, Corporate Communications, Hakama Sidi Ali, stated on Tuesday that the figure represents the biggest monthly total inflows on record. This underscores the CBN’s continued efforts to improve liquidity in Nigeria’s forex market.
The significant increase in remittance receipts was due to policy measures implemented by the CBN to improve liquidity in Nigeria’s foreign exchange market.
These efforts included issuing licenses to new International Money Transfer Operators (IMTOs), creating a willing buyer-willing seller paradigm, and ensuring IMTOs have timely access to naira liquidity.
Diaspora remittances are an important source of foreign cash for Nigeria, augmenting both foreign direct investment and portfolio assets.
The CBN stated that its actions have encouraged ongoing increase in these inflows, which aligns with the institution’s goal of doubling formal remittance receipts within a year.
The statement added, “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.”
Recent data from the National Bureau of Statistics (NBS) revealed that Nigeria’s year-on-year headline inflation rate slowed in July 2024, for the first time in 19 months.
CBN said the development is a clear indication that its monetary policy tightening measures are delivering results.
“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 added.
