Diaspora remittances rose by 61% – CBN

The Central Bank of Nigeria has revealed that diaspora remittances processed through International Money Transfer Operators reached $4.22bn between January and October 2024.

This figure nearly doubles the $2.62bn recorded during the same period in 2023.

CBN Governor Olayemi Cardoso shared this information while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions during an interactive session held at the National Assembly on Wednesday.

According to Cardoso, the year-on-year increase of approximately 61.1 per cent reflects significant growth.

He also provided a monthly analysis, highlighting that remittances increased from $336m in September 2024 to $402m in October 2024.

The governor attributed this 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.

Cardoso further projected that remittance inflows would continue to rise by the end of the year, given the current trajectory.

According to the World Bank, the Nigerian diaspora remits between $20bn and $25bn annually, though these funds are not typically channeled towards private equity investments.

The global financial institution emphasized that remittances are a vital source of household income for Low- and Middle-Income Countries.

They play a significant role in alleviating poverty and improving nutrition and are linked to better outcomes such as higher birth weights and increased school enrolment rates among disadvantaged households.

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

This is as the apex bank assured Nigerians of better economic fortunes in 2025.

According to the CBN governor, “External Reserves rose from $38.35bn on September 30, 2024, to $42.01bn as of December 12, 2024.

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 9.09months  of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks,” he said.

On cash shortage, the CBN boss reiterated the application of the new policy of an N150m fine against any branch of Banks caught indulging in the illegal distribution of new Naira notes to currency hawkers and unscrupulous elements.

He 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.

“The gradual stabilization 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,” he said.

Impressed with his presentation, the Chairman of the Committee, Senator Adetokunbo Abiru (APC Lagos East), said he deserved a round of applause, which was not allowed in the Senate.