Nigeria’s diaspora remittances soar to $533m in July as CBN reveals 130% growth

Business a.m.

The Central Bank of Nigeria (CBN) has announced a significant rise in diaspora remittances in July, with inflows hitting an all-time high of $553 million, the largest monthly total ever recorded.

The remarkable achievement in remittance flows comes as the CBN continues to implement measures aimed at improving the liquidity of Nigeria’s foreign exchange market.

According to the CBN, remittance inflows increased by 130 percent compared to the same period in 2023.

The report, signed by Hakama Sidi Ali, the acting director of corporate communications, attributed the growth to the implementation of various policy measures introduced by the apex bank to enhance liquidity in Nigeria’s foreign exchange market.

The CBN noted that it has put in place several measures to enhance liquidity in Nigeria’s foreign exchange market, including granting licenses to new International Money Transfer Operators (IMTOs) to boost competition and attract more remittances into the economy, implementing a willing buyer-willing seller model to promote market-determined exchange rates and encourage more foreign currency inflows, and ensuring timely access to naira liquidity for IMTOs to facilitate faster processing of remittance transactions and bolster their confidence in the Nigerian financial system.

“These measures include granting licences 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,” Ali stated.

The acting director also emphasised that the upward trend in remittance inflows, was a clear indication of the success of the CBN’s ongoing efforts to enhance public confidence in the foreign exchange market.

In addition to highlighting the positive impact of their initiatives on diaspora remittances, the CBN further pointed to recent data from the National Bureau of Statistics (NBS), which indicated that inflation rates in the country had slowed for the first time in 19 months.

Commenting on the development, the CBN noted that this was a clear sign that the bank’s monetary policy tightening measures, aimed at reining in inflation, were indeed delivering positive results.

The CBN remains optimistic that the successful implementation of these measures will play a key role in maintaining stability in the foreign exchange market and achieving its overall objective of promoting economic growth and stability in Nigeria.