The Central Bank of Nigeria (CBN) recently announced a major milestone in diaspora remittances. Nigerians living abroad sent a record $553 million back home in July 2024, the highest ever for a single month. This is a significant 130% increase from the $240 million recorded in July 2023.
The CBN credits this remarkable growth to its recent policies aimed at increasing foreign currency liquidity in the country. These policies have been designed to make it easier and more attractive for Nigerians abroad to send money home, helping to boost Nigeria’s foreign exchange reserves.
In a statement, Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, noted that the bank’s focus has been on improving the country’s foreign exchange market. By encouraging more inflows from the diaspora, the CBN hopes to strengthen the Naira and stabilize the economy.
The surge in remittances is not only a testament to the strength of the Nigerian diaspora but also a reflection of the central bank’s efforts to create a more favorable environment for foreign currency inflows. This boost will likely provide much-needed support to families and businesses across the country, helping to drive economic growth in the months ahead.
Diaspora remittances have become a critical source of foreign exchange for Nigeria, especially in times of economic uncertainty. With the CBN’s new policies encouraging even more inflows, the country stands to benefit from a more stable and vibrant economy.
CBN said:
“The CBN has reported a significant increase in remittance inflows, reaching $553 million in July 2024, a 130 percent increase from the corresponding period in 2023.
“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 attributable to policy measures introduced 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.
“Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment portfolio investments.
“The CBN’s initiatives have supported 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 robust and inclusive banking system,and promote price stability,which is essential for sustained 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-a clear indication 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.”
As more Nigerians abroad continue to send money home, it’s clear that remittances will remain a vital component of the country’s financial landscape.
