CBN: Remittance inflow hit $553m in July — record-high for a month

The Central Bank of Nigeria (CBN) says it recorded remittance inflows of $553 million in July.

This is a 130 percent increase from the corresponding period in 2023, the CBN said in a statement on Tuesday, signed by Hakama Sidi Ali, its acting director of corporate communications.

The surge in diaspora remittance comes a month after the CBN granted eligible international money transfer operators (IMTOs) access to trade on the official foreign exchange (FX) window.

The move allowed the IMTOs to access naira liquidity in the official market.

Prior to this, the regulator had, on May 15, granted approval in principle (AIP) to 14 new IMTOs — after mandating them to only make naira payments to recipients in Nigeria, removing the allowable limit of the FX rate quoted for such transactions.

Announcing the inflows on Tuesday, the apex bank said the figure is also the highest monthly total inflows on record and reflects its ongoing efforts to enhance liquidity in Nigeria’s FX market.

“The substantial growth in remittance receipts is attributable to policy measures introduced by the CBN to enhance liquidity in Nigeria’s foreign exchange market,” CBN said.

“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.”

CBN said the increase in remittances is a strong testament to the success of its ongoing efforts to bolster public confidence in the FX market, 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) revealed that Nigeria’s year-on-year headline inflation rate slowed in July 2024, for the first time in 19 months – a clear indication that the CBN’s monetary policy tightening measures are delivering results,” the statement added.

The apex bank said it anticipates that the measures would contribute to achieving its broader objective of maintaining stability in the FX market.

The CBN said it will continue to monitor market conditions and adjust policies as necessary to enable greater remittance flows into Nigeria.