The Central Bank of Nigeria (CBN) has reported a significant 130% increase in remittance inflows, totaling $553 million in July 2024. This remarkable surge, the highest on record for a single month, underscores the success of recent policy interventions aimed at enhancing the country’s foreign exchange market.
Acting Director of Corporate Communications, Hakama Sidi Ali, highlighted the impact of these measures, which include the introduction of new International Money Transfer Operators (IMTOs), the adoption of a willing buyer-willing seller model, and streamlined access to naira liquidity for IMTOs. These changes have not only bolstered remittance inflows but also strengthened the naira by increasing the availability of foreign currency.
This development is particularly noteworthy as it reflects a strategic shift in the CBN’s approach to managing foreign exchange, prioritizing the mobilization of diaspora remittances as a key source of external revenue. The growth in remittances is now seen as a vital component in stabilizing Nigeria’s economy, supplementing other foreign exchange sources like foreign direct investment and portfolio investments.
The CBN’s efforts to liberalize the remittance market, including the January 2024 removal of the cap on exchange rates for IMTOs, have been pivotal in achieving this milestone. As the CBN continues to implement its strategy, there is optimism that Nigeria’s formal remittance receipts could double within the next year, providing much-needed support to the country’s economic recovery efforts.
