The Central Bank of Nigeria (CBN) has announced a record-breaking remittance inflow of $553 million in July, reflecting a 130% increase from the same period in 2023. This unprecedented growth is a result of targeted policy measures by the CBN to boost liquidity in the nation’s foreign exchange market, according to Hakama Sidi-Ali, CBN’s Acting Director of Corporate Communications.
Sidi-Ali highlighted that this figure represents the highest monthly remittance inflows ever recorded, signaling the success of the CBN’s strategies. These strategies include 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.
Diaspora remittances have become a critical source of foreign exchange for Nigeria, complementing foreign direct investment and portfolio investments. The CBN’s efforts have significantly contributed to the steady growth of these inflows, aligning with its objective of doubling formal remittance receipts within a year.
Sidi-Ali also pointed out that the increase in remittances is a strong indicator of the public’s growing confidence in Nigeria’s foreign exchange market. Additionally, recent data from the National Bureau of Statistics (NBS) showed a decline in Nigeria’s year-on-year headline inflation rate in July, marking the first decrease in 19 months. This suggests that the CBN’s monetary policy measures are effectively stabilizing the economy.
The CBN plans to continue monitoring market conditions and will adjust its policies as necessary to further encourage remittance flows into the country.
Credit: NAN (Text Excluding Headline)
