The Central Bank of Nigeria (CBN) has announced a significant increase in remittance inflows, reaching a record high of $553 million in July 2024.
This represents a 130% increase from the corresponding period in 2023.
The CBN attributed the growth to policy measures aimed at enhancing liquidity in the foreign exchange market. Diaspora remittances have remained a crucial source of foreign exchange for Nigeria, supplementing foreign direct investment and portfolio investments.
The apex bank’s initiatives, including granting licenses to new International Money Transfer Operators and implementing a willing buyer-willing seller model, have supported continued growth in remittance inflows. The CBN aims to double formal remittance receipts within a year.
The increase in remittances is a testament to the success of the CBN’s efforts to bolster public confidence in the foreign exchange market, strengthen the banking system, and promote price stability. Recent data shows a slowdown in Nigeria’s year-on-year headline inflation rate, indicating the effectiveness of the CBN’s monetary policy tightening measures.
The CBN will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria, contributing to its broader objective of maintaining stability in the foreign exchange market.
