CBN targets $1bn monthly remittance inflows
The Central Bank of Nigeria (CBN) has set an ambitious target of attracting a whopping $1 billion in monthly remittance inflows, as part of its strategic efforts to boost foreign exchange earnings and stabilize the naira.
This move is aimed at leveraging the vast diaspora network of Nigerians abroad, who sent home over $25 billion in remittances last year, making Nigeria one of the top remittance-receiving countries in the world.
This is just as the bank says it has recovered 1 trillion out of quasi-fiscal interventions totaling over N10 trillion, which undermined market confidence and weakened the effectiveness of CBN’s policy tools.
Speaking at the 2024 bankers night on Friday in Lagos, the CBN Governor Olayemi Cardoso said foreign portfolio inflows have increased by over 72percent during this period, while foreign exchange reserves have risen from $32 billion in May 2023 to over $40 billion today.
This represents the equivalent of eight months’ import cover and marks the highest reserve level in nearly three years.
According to him, the market has also supported over $9billion in capital outflows over the past year as investors were able to freely repatriate capital and dividends without the need to wait for several months as experienced in the past.
“These results reflect improved confidence in the reforms we have embarked on. In addition, we witnessed a $6billion current account surplus in the first half of 2024 as a result of the impact of these reforms, “ he stated.
He said reduction in petroleum product imports supported by improved domestic refining capacity, a growing focus on non-oil exports and higher remittance inflows helped to support Nigeria’s positive current account balance.
“An enabling policy environment has led to a doubling of monthly remittances from an average of $300 million in 2023 to nearly $600 million in August 2024. We are committed to further integrating the Nigerian diaspora into our financial system, exemplified by the introduction of the non-resident BVN registration.
“We expect our financial institutions to develop products that not only enable the diaspora to support their families but also provide opportunities for savings and investment in Nigeria,” Cardoso stated.
