The Central Bank of Nigeria (CBN) reported a significant increase in remittance inflows, reaching $553 million in July 2024—a 130% increase from the same period in 2023.
In a statement on Tuesday, the CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, noted that this figure represents the highest monthly inflows on record and underscores the CBN’s ongoing efforts to enhance liquidity in Nigeria’s foreign exchange market.
The substantial growth in remittance receipts is attributed to CBN’s policy measures aimed at boosting foreign exchange liquidity.
These measures include issuing licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and ensuring timely access to naira liquidity for IMTOs.
Diaspora remittances are a vital source of foreign exchange for Nigeria, supplementing foreign direct and portfolio investments.
The CBN’s initiatives have supported the continued growth of these inflows, aligning 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.”
Additionally, 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.
The CBN said this is evidence that its monetary policy tightening measures are yielding positive 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 concluded.
