CBN Reports Record $553 Million Remittance Inflows in July
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has reported a historic increase in remittance inflows, with the total reaching $553 million in July 2024.
This figure represents a 130 percent surge compared to the corresponding period in 2023, marking the highest monthly total ever recorded.
In a statement issued on Tuesday in Abuja, Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, highlighted that the remarkable growth in remittance inflows underscores the effectiveness of the CBN’s strategic efforts to enhance liquidity in Nigeria’s foreign exchange market.
According to Mrs. Sidi Ali, “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 credited to a series of policy measures introduced by the CBN aimed at increasing the accessibility and attractiveness of Nigeria’s foreign exchange market. Key among these measures is the granting of licenses to new International Money Transfer Operators (IMTOs), which has diversified the options available for remittance services. Additionally, the implementation of a willing buyer-willing seller model has provided a more flexible framework for exchange rates, allowing market forces to better determine pricing.
Moreover, the CBN has ensured that IMTOs have timely access to naira liquidity, further enhancing the efficiency and reliability of remittance transfers. These steps have significantly boosted confidence among diaspora Nigerians, encouraging higher remittance inflows.
Diaspora remittances are a critical source of foreign exchange for Nigeria, playing a vital role in supplementing both foreign direct investment and portfolio investments.
The CBN’s proactive initiatives have not only supported the continued growth of these inflows but also align with the institution’s ambitious objective of doubling formal remittance receipts within a year. Mrs. Sidi Ali emphasized that the increase in remittances serves as “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 positive impact of these measures is further evidenced by recent data from the National Bureau of Statistics (NBS), which revealed a slowdown in Nigeria’s year-on-year headline inflation rate in July 2024, marking the first decline in 19 months. This trend is seen as a clear indication that the CBN’s monetary policy tightening measures are yielding the desired results in stabilizing the economy.
Looking ahead, the CBN remains committed to sustaining the momentum in remittance inflows as part of its broader objective of maintaining stability in the foreign exchange market. The Bank has reiterated its dedication to continuously monitoring market conditions and making policy adjustments as necessary to ensure the steady growth of remittance flows into Nigeria.
This significant achievement by the CBN is expected to have far-reaching implications for Nigeria’s economic stability, particularly in terms of enhancing foreign exchange reserves, reducing exchange rate pressures, and supporting overall economic growth.
