Diaspora Remittances Increase By 130%, Reach $553m In July

The country’s apex financial institution, the Central Bank of Nigeria (CBN) has reported a significant increase in remittance inflows, which will reach $553 million by July 2024.

In a statement, Mrs. Hakama Sidi Ali, Acting Director, Corporate Communications, stated that the figure represents a 130 percent increase over the same period in 2023.

According to the statement, the figure is also the highest monthly total inflows on record, reflecting the CBN’s ongoing efforts to improve liquidity in Nigeria’s foreign exchange market.

“The substantial increase in remittance receipts is due to the CBN’s policy measures to improve liquidity in Nigeria’s foreign exchange market. These measures include granting new International Money Transfer Operators (IMTQOs) licenses, putting in place a willing buyer-willing seller model, and providing IMTOs with timely access to naira liquidity.

“Diaspora remittances are an important source of foreign currency for Nigeria, supplementing both foreign direct investment and portfolio investments. The CBN’s initiatives have contributed to continued growth in these inflows, which aligns with the institution’s goal of doubling formal remittance receipts within a year.

“The increase in remittances demonstrates the CBN’s ongoing efforts to boost public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, all of which are required for long-term 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, indicating that the CBN’s monetary policy tightening measures are working.

“The CBN anticipates that these measures will help to achieve its overarching goal of maintaining foreign exchange market stability. According to the statement, the Bank will continue to monitor market conditions and adjust policies as needed to allow for greater remittance flows into Nigeria.