- It’s 130% rise over 2023 figures
BY CHINYERE OBIORA, LAGOS – The Central Bank of Nigeria (CBN) has confirmed a significant increase in remittance inflows with the figures hitting $553 million mark in July 2024.
This amount represents about 130 percent increase from the figures recorded during the corresponding period in 2023.
It also represents the highest monthly total inflows on record and reflects ongoing efforts by the apex bank to enhance liquidity in Nigeria’s foreign exchange market.
According to available information, the substantial growth in remittance receipts is attributable to policy measures introduced by the CBN to enhance liquidity in Nigeria’s foreign exchange market.
These measures include granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for IMTOs.
Importantly too, diaspora remittances remain a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.
The CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year.
Speaking on the development, Acting Director, Corporate Communications, Hakama Sidi-Ali said 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, as well as promote price stability, which is essential for sustained economic growth.
Also, with recent data from the National Bureau of Statistics (NBS) showing Nigeria’s year-on year headline inflation rate slowed in July 2024, for the first time in 19 months, it is a clear indication that the CBN’s monetary policy tightening measures are delivering expected results.
The CBN Spokesperson said the apex bank anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market.
She assured that the Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria.
