The Central Bank of Nigeria (CBN), yesterday, announced a significant surge in remittance inflows, reaching an all-time high of $553 million in July 2024.
A statement by the Director of Corporate Communications, Hakama Sidi-Ali, said the figure, a 130% increase over 2023 level, underscores the effectiveness of recent policy measures aimed at enhancing liquidity in Nigeria’s foreign exchange market.
The statement reads: “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 substantial growth in remittance receipts is attributable to policy measures introduced by the CBN to enhance liquidity in Nigeria’s foreign exchange market.”
She listed the measures to include 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.
The substantial growth in remittance receipts is attributable to policy measures introduced by the CBN to enhance liquidity in Nigeria’s foreign exchange market.
Ms. Sidi-Ali further noted that “Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.”
She added 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.
She 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 (NBS) 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 anticipates that these measures will contribute to achieving its broader objective of maintaining stability in the foreign exchange market.”
She also reassured that “The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into the market.”
