CBN: Overseas remittances hit $1.3bn in February — over 400% increase from January

The Central Bank of Nigeria (CBN) says foreign exchange inflow into the country increased significantly in February 2024.

Hakama Sidi-Ali, CBN’s acting director of corporate communications, spoke to journalists in Abuja on Thursday.

The CBN said the surge was driven by increased remittance payments by Nigerians overseas and the purchase of naira assets by foreign portfolio investors.

“The Bank’s data indicates that overseas remittances rose to US$1.3 billion in February 2024, more than four times the US$300 million received in January,” she said.

“Foreign investors purchased more than US$1 billion of Nigerian assets last month, with total portfolio flows of at least US$2.3 billion recorded thus far in 2024 compared to US$ 3.9 billion seen in total for last year.”

The CBN spokesperson said higher FX inflows continued in March 2024, driven by increased investor interest in short-term sovereign debt following the recent adjustment to benchmark interest rates.

She explained that government securities issuances were significantly oversubscribed, with foreign investors accounting for over 75 percent of bids received at the auctions conducted on March 1 and 6, 2024.

On November 2023, Olayemi Cardoso, governor of the CBN, expressed concern over the status of remittances and assured that investigations would be carried out and necessary actions taken to ensure that Nigeria remains the highest receiver of remittances in Sub-Saharan Africa after Egypt.