Cardoso: Diaspora remittances rose to $4.2bn in 10 months — up by 61%

The Central Bank of Nigeria (CBN) says diaspora remittances through international money transfer operators  (IMTOs) reached $4.22 billion between January and October 2024.

The figure is 61 percent or $2.62 billion higher than the amount recorded during the same period in 2023.

Olayemi Cardoso, governor of CBN told the senate committee on banking, insurance, and other financial institutions during an interactive session held at the national assembly on Wednesday.

Cardoso said the year-on-year increase reflects significant growth.

He also said on a month-on-month basis, remittances increased from $336 million in September 2024 to $402 million in October 2024.

Cardoso also said the remittance inflows would continue to rise by the end of the year, given the current trajectory.

The governor attributed the surge to improved efficiency in the remittance system, the favorable effects of President Bola Tinubu’s policies, and the growing trust among Nigerians in the diaspora to support national development.

‘NIGERIA’S $42BN EXTERNAL RESERVES CAN FUND IMPORTATION OF GOODS FOR NINE MONTHS’

Cardoso also said the country’s $42 billion external reserves can finance the importation of goods and services for more than nine months.

“External reserves rose from $38.35 billion on September 30, 2024, to $42.01 billion as of December 12, 2024,” Cardoso said.

“The increase in external reserves within the stated period, he explained, was driven largely by receipts from crude oil-related taxes and third-party receipts in Q3 2024.

“We maintained a current account surplus and saw remarkable improvements in our trade balance.

“Our external reserves level can finance over 9 months of import of goods and services, higher than the international benchmark of 3 months and a robust buffer against shocks.”

On cash shortage, the CBN boss reiterated the application of the new policy of an N150 million fine against any branch of banks caught indulging in the illegal distribution of new naira notes to currency hawkers and unscrupulous elements.

Cardoso added that the Nigerian economy will take a better shape in the 2025 fiscal year through policies and measures that had been put on the ground.

“Distinguished Senators, as we conclude this briefing, I want to highlight that despite the challenges facing our economy, there are clear reasons for optimism,” Cardoso said.

“The gradual stabilisation of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”

On October 17, the apex bank said remittance inflows rose to almost $600 million as of the end of  September.

Prior to the development,  on June 25, CBN granted eligible IMTOs access to trade on the official FX window.