The Central Bank of Nigeria (CBN) has announced a substantial increase in remittance inflows, reaching $553 million in July 2024, marking a 130% rise compared to the same period in 2023. This figure represents the highest monthly total inflows ever recorded, reflecting the CBN’s successful efforts to boost liquidity in Nigeria’s foreign exchange market.
In a statement on Tuesday, Hakama Sidi Ali, Ag. Director of Corporate Communications at the CBN, attributed the remarkable growth to recent policy measures designed to enhance foreign exchange liquidity. These measures include the licensing of new International Money Transfer Operators (IMTOs), the implementation of a willing buyer-willing seller model, and the facilitation of timely access to naira liquidity for IMTOs.
Diaspora remittances play a crucial role in Nigeria’s foreign exchange reserves, complementing foreign direct investment and portfolio investments. The CBN’s initiatives are aligned with its goal of doubling formal remittance receipts within a year.
“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,” the statement read.
The CBN also noted that recent data from the National Bureau of Statistics (NBS) showed Nigeria’s headline inflation rate slowing in July 2024 for the first time in 19 months, indicating that the Bank’s monetary policy measures are producing positive results.
“The CBN anticipates that these measures will contribute to maintaining stability in the foreign exchange market. The Bank will continue to monitor market conditions and adjust policies as necessary to facilitate greater remittance flows into Nigeria,” the statement concluded.
