CBN Record $172m Rise In Diaspora Remittance One Month

The Central Bank of Nigeria recorded a $172 million rise in direct remittances in one month.

The recent CBN statistics reviewed indicated that remittances totaled $138.56 million in January, $39.14 million in February, $104.90 million in March, $193.31 million in April, and $365.44 million in May 2024.

The data shows a 90 per cent ($172 million) increase from April to May, reaching $365.44 million, and a 163 per cent increase from January to May, indicating a substantial increase in foreign-currency inflows, a favourable development for the economy amid mounting debt and efforts to diversify revenue sources.

This increase reflects the CBN’s efforts to improve foreign currency remittance flows through legitimate channels.

The CBN recently approved in principle 14 new International Money Transfer operators, in an attempt to streamline processes and eliminate bottlenecks, promoting more transfers via official channels.

The Acting Director of Corporate Communications at the CBN, Sidi Ali underlined the bank’s commitment to making remittance operations go smoothly.

“We are wasting no time driving progress to remove any bottlenecks hindering flows through formal channels permanently. We have a determined pathway and a sequenced approach to tackling all challenges ahead, working hand in hand with key stakeholders in the remittance industry,” she said.

The CBN had in January 2024, lifted the previously enforced exchange rate cap on IMTOs, allowing for more flexible currency quoting.

This regulatory change was accompanied by new operational rules and higher license fees for IMTOs, demonstrating the CBN’s efforts to improve the sector’s operational standards and financial obligations.

This present rise is crucial as Nigeria attempts to stabilize its economy amidst mounting external debt obligations.

According to recent statistics, the Federal Government spent $2.18 billion on debt servicing between January and May 2024, highlighting the importance of foreign exchange gains from remittances.

The growth in remittance inflows is consistent with broader economic initiatives aimed at diversifying revenue streams away from oil-dependent earnings.

Despite its focus on domestic borrowing, the Nigerian government has significant external debt servicing responsibilities.