By Niyi jacobs
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 same period in 2023 and is the highest monthly total inflows on record.
The CBN attributes this growth to policy measures aimed at enhancing liquidity in Nigeria’s foreign exchange market, including granting licenses to new International Money Transfer Operators (IMTOs) and implementing a willing buyer-willing seller model.
Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing foreign direct investment and portfolio investments. 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 is a testament to the success of the CBN’s efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability. 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, indicating that the CBN’s monetary policy tightening measures are delivering results.
The CBN will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria.
