The Central Bank of Nigeria (CBN), on Tuesday, announced an unprecedented surge in remittance inflows, reaching a historic high of $553 million in July.
The figure represents a remarkable 130 percent increase compared to the same period in 2023, marking the highest monthly total ever recorded.
This was disclosed by the Spokesperson of the apex bank, Mrs Hakama Sidi Ali in a statement.
According to her, the significant uptick underscores the CBN’s strategic efforts to enhance liquidity within Nigeria’s foreign exchange market.
The dramatic rise in remittance inflows can be attributed to a series of forward-thinking policy measures implemented by the CBN. These include the introduction of new International Money Transfer Operators (IMTOs), the adoption of a willing buyer-willing seller exchange rate model, and ensuring that IMTOs have prompt access to naira liquidity. These initiatives have been instrumental in fostering a more vibrant and accessible foreign exchange landscape in Nigeria.
Diaspora remittances have long been a vital source of foreign exchange for Nigeria, providing a steady inflow of capital that supplements both foreign direct investment and portfolio investments. The CBN’s proactive approach has not only sustained but significantly boosted these inflows, aligning with the institution’s ambitious goal of doubling formal remittance receipts within the year.
The sharp increase in remittances is a testament to the effectiveness of the CBN’s ongoing efforts to build public trust in the foreign exchange market. By reinforcing a resilient and inclusive banking system, the Bank is also promoting price stability—a cornerstone of sustainable economic growth.
Complementing this positive trend, recent data from the National Bureau of Statistics (NBS) revealed a slowdown in Nigeria’s year-on-year headline inflation rate for July 2024, the first decline in 19 months. This development signals that the CBN’s monetary tightening policies are beginning to yield tangible results, contributing to a more stable economic environment.
Looking ahead, the CBN remains committed to its overarching goal of maintaining stability in the foreign exchange market. The Bank will continue to closely monitor market dynamics, adjusting policies as needed to further amplify remittance flows and support Nigeria’s broader economic objectives.