The Central Bank of Nigeria has recorded a significant increase in direct remittances, with a total of $365.44m reported in May 2024. This marks a substantial growth of 90% from April to May and 163% from January to May, showcasing a positive trend in foreign-currency inflows.
The surge in remittances is attributed to the CBN’s efforts to enhance formal channels for currency flows. With the approval of 14 new International Money Transfer Operators and regulatory changes allowing for more flexible currency quoting, the CBN is actively working to streamline processes and encourage more remittances through official channels.
This increase in remittances is crucial for Nigeria as it faces rising external debt obligations, with $2.18bn spent on debt servicing between January and May 2024. By diversifying revenue sources and bolstering foreign exchange reserves, remittances play a vital role in stabilizing the economy.
The proactive measures taken by the CBN, in collaboration with IMTOs, are expected to sustain this positive momentum in remittance inflows. As Nigeria navigates economic reforms and external debt dynamics, the resilience of remittances provides a crucial buffer against fiscal vulnerabilities.