The Central Bank of Nigeria (CBN) has announced a substantial increase in remittance inflows, which surged to $553 million in July 2024.
This represents a 130% rise compared to the same period in 2023, marking the highest monthly inflow on record.
In a statement released on Tuesday, the CBN’s acting Director of Corporate Communications, Hakama Ali, attributed this record-breaking figure to the Bank’s ongoing efforts to enhance liquidity in Nigeria’s foreign exchange market.
“The CBN has reported a significant increase in remittance inflows, reaching $553 million in July 2024, a 130% increase from the corresponding period in 2023.
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 statement read.
The CBN highlighted that the growth in remittance receipts is largely due to recent policy measures aimed at boosting foreign exchange liquidity.
These measures include the issuance of licenses to new International Money Transfer Operators (IMTOs), the implementation of a willing buyer-willing seller model, and ensuring timely access to naira liquidity for IMTOs.
“These measures included granting licenses to new International Money Transfer Operators, implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for IMTOs,” the statement added.
The CBN emphasized the importance of diaspora remittances as a critical source of foreign exchange for Nigeria, complementing both foreign direct investment and portfolio investments.
The Bank’s initiatives have been pivotal in maintaining growth in remittance inflows, in line with its goal of doubling formal remittance receipts within a year.
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.”
Recent data from the National Bureau of Statistics also indicated that Nigeria’s year-on-year headline inflation rate decreased in July 2024 for the first time in 19 months, suggesting that the CBN’s monetary policy tightening measures are yielding positive results.
The CBN reaffirmed its commitment to maintaining stability in the foreign exchange market and will continue to monitor market conditions, adjusting policies as necessary to encourage greater remittance flows into Nigeria.
