The Central Bank of Nigeria (CBN) has announced a new record-breaking remittance inflow of $553 million in July 2024, marking 130% increase from the corresponding period in 2023.
This figure represents the highest monthly total on record, underscoring the CBN’s successful efforts to enhance liquidity in Nigeria’s foreign exchange market.
According to a statement by the apex bank’s acting Director of Corporate Communications, Hakama Ali, the substantial growth in remittance receipts can be attributed to various policy measures introduced by the CBN. These measures include the issuance of licenses to new International Money Transfer Operators (IMTOs), the implementation of a willing buyer-willing seller model, and the provision of timely access to naira liquidity for IMTOs.
“Diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments,” the CBN emphasized. The bank’s initiatives are aligned with its broader objective of doubling formal remittance receipts within a year, further boosting public confidence in the foreign exchange market.
The increase in remittance inflows also aligns with recent data from the National Bureau of Statistics, which revealed a slowdown in Nigeria’s year-on-year headline inflation rate in July 2024 for the first time in 19 months. The CBN noted that this development reflects the effectiveness of its monetary policy tightening measures, which aim to maintain stability in the foreign exchange market.
