The Central Bank of Nigeria (CBN), on Tuesday said the country recorded a significant 130% growth in remittance inflows at US$553m in July 2024, when compared to that of the corresponding period in 2023.
The inflow, the highest monthly total inflows on record, the apex bank said in a statement by Mrs. Hakama Sidi Ali, the acting Director, Corporate Communications, reflects its ongoing efforts to enhance liquidity in Nigeria’s foreign exchange market.
The substantial growth in remittance receipts, she added, is attributable to policy measures, such as 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, introduced by the CBN to enhance liquidity in Nigeria’s foreign exchange market.
Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments, the statement explained, adding that 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.
The increase in remittances, she continued, “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 nclusive banking system, and promote price stability, which is essential for sustained economic growth.”
Recent data from the National Bureau of Statistics (NBS), the CBN continued, “revealed that Nigeria’s year-on-year headline inflation rate slowed in July 2024, for the first time in 19 months – a clear indication that the CBN’s monetary policy tightening measures are delivering results.”
The CBN, she continued, 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.
