The Central Bank of Nigeria (CBN) has announced a remarkable surge in remittance inflows, which reached $553 million in July 2024. This figure marks a 130% increase compared to the same period in 2023, setting a new record for monthly inflows.

In a statement released on Tuesday, the CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, attributed this substantial growth to the bank’s recent policy measures aimed at enhancing liquidity in Nigeria’s foreign exchange market. These initiatives include licensing new International Money Transfer Operators (IMTOs), adopting a willing buyer-willing seller model, and ensuring timely access to naira liquidity for IMTOs.

Diaspora remittances are a vital source of foreign exchange for Nigeria, complementing foreign direct investment and portfolio investments. The CBN’s efforts have supported continued growth in these inflows, aligning with the institution’s goal 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 a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth,” the statement read.

The announcement comes as 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. The CBN noted that this development underscores the effectiveness of its monetary policy tightening measures.

The CBN added that it will continue to monitor market conditions and adjust its policies as needed to further boost remittance flows into Nigeria, contributing to broader economic stability.

4o