The Central Bank of Nigeria (CBN) has announced a record-breaking remittance inflow of $553 million in July 2024, marking a 130 percent increase from the same period in 2023.
In a statement released on Tuesday, August 20, 2024, the CBN’s spokesperson, Sidi Hakama, highlighted that this figure represents the highest monthly total inflows on record, which reflects the ongoing efforts by the CBN to enhance liquidity in Nigeria’s foreign exchange market.
“These measures 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,” Hakama stated.
The CBN emphasized the significance of diaspora remittances as a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments. The bank’s initiatives have been pivotal in supporting 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 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,” Hakama added.
Furthermore, the CBN noted that recent data from the National Bureau of Statistics (NBS), indicating a decrease in Nigeria’s inflation rate on a year-on-year basis to 33.40 percent in July, is evidence 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. The Bank will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria,” the statement concluded.
Despite the surge in remittances, the Naira fell against the dollar consecutively on Monday and last Friday, trading at N1579.89 per dollar.
