The Central Bank of Nigeria (CBN) has announced a remarkable increase in remittance inflows, with figures hitting $553 million in July 2024, marking a 130% rise compared to the same period in 2023.
This surge represents the highest monthly total on record, underscoring the effectiveness of the CBN’s strategic interventions to enhance liquidity in Nigeria’s foreign exchange market.
In a statement released on Tuesday by the Apex bank’s Acting Director of Corporate Communications, Hakama Sidi Ali, the CBN highlighted the substantial growth as a direct result of policy measures aimed at bolstering foreign exchange liquidity. These initiatives included granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and facilitating timely access to naira liquidity for IMTOs.
The CBN’s efforts have not only increased remittance inflows but also reinforced the role of diaspora remittances as a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments.
The bank reiterated its commitment to doubling formal remittance receipts within a year.
“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,” the statement read.
The latest data from the National Bureau of Statistics (NBS) further supported the CBN’s optimistic outlook, revealing a slowdown in Nigeria’s year-on-year headline inflation rate in July 2024, the first decline in 19 months.
“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.