The Central Bank of Nigeria (CBN) reported a considerable increase in remittance inflows of $553 million in July. According to a statement published by CBN’s Acting Director, Corporate Communications, Mrs. Hakama Sidi-Ali, the all-time high remittances reflect a 130 percent increase over the same period in 2023.
Sidi-Ali stated that the result was the largest monthly total inflows on record and reflected the central bank’s continued efforts to improve liquidity in Nigeria’s foreign exchange market.
According to her, the significant increase in remittance receipts is due to policy measures implemented by the CBN to improve 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 and 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,” she said.
She said that the increase in remittances was a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market.
The director said that it was an indication of efforts to strengthen a 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) showed that Nigeria’s year-on-year headline inflation rate slowed in July for the first time in 19 months.
“This is 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,” she said.
Sidi-Ali said that the apex bank would continue to monitor market conditions and adjust policies as necessary to enable greater remittance flow into Nigeria.
