CBN Breaks New Record Under Cardoso With Dollar Inflows as Naira Trades at New Rates
- The Central Bank of Nigeria (CBN) has announced record remittance inflows to Nigeria in 2024
- Data by the CBN shows that remittances increased by nine per cent to $20.98 billion, the highest since 2019
- Meanwhile, the World Bank has said Nigeria’s diaspora remittances exceed those of any other African country
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) revealed that remittance flows into the Nigerian economy rose by nine per cent to $20.98 billion, the highest level in five years under the current leadership of Olayemi Cardoso.
The apex bank said the last time remittances exceeded that level was in 2029 when they hit $23.80 billion.
Source: Getty Images
Nigeria hits new record with dollar inflow
World Bank’s data shows that Nigeria’s highest remittance inflow in the last 10 years was in 2018 at $24.31 billion, while the lowest was recorded in 2024 at $17.21 billion.
CBN revealed that personal remittances remained robust in 2024, rising 8.9% to $20.93 billion.
Inflows from International Money Transfer Operators (IMTOs) rose by 43.5%, hitting $4.73 billion from $3.30 billion in 2023, showing a deeper collaboration with diasporan Nigerians.
Official development assistance also rose by 6.2%, boosting Nigeria’s external reserves.
Remittances: Nigeria beats other African countries
The World Bank revealed that remittances to Nigeria remain higher than those of other African countries.
The global lender disclosed that Ghana hit $2.43 billion in 2023, from $2.07 billion in 2022, while South Africa recorded a decline from $872.85 million in 2022 to $803.3 million in 2023.
Reports say Nigeria recorded a net acquisition of financial assets of $12.12 billion in 2024, while portfolio inflows increased, rising by 106.5% to $13.35 billion.
The apex bank stated that resident foreign currency holdings rose by $5.41 billion, indicating rising confidence in the Nigerian economy.
However, foreign direct investment (FDI) dropped $2.3% to $1.08 billion.
Remittances: Cardoso attributes growth to reforms
The governor of the Central Bank of Nigeria (CBN) said that the recent improvement in remittances was due to economic reforms, saying that a remarkable increase in monthly inflows from $250 million in 2024 to $600 million by September of that year.
He revealed that more Nigerians abroad are choosing official and formal channels to remit funds due to CBN policies that have reformed remittance platforms.
Cardoso stressed that the recent stabilisation of the FX market and growth in key sectors are indicators of economic recovery.
He reiterated that increased remittances and a more stable macroeconomic climate would support economic progress.
He said that the CBN will pursue deeper collaboration with the Nigerian diaspora community in the Middle East to boost remittance flows and enhance the resilience of Nigeria’s financial sector.
The naira depreciates
Meanwhile, the Nigerian currency, the naira, crashed again on Wednesday, after a brief reprieve in the Nigerian Foreign Exchange Window (NFEM) on Wednesday, April 9, 2025.
The naira’s crash comes as crude oil prices fell to pandemic levels following the trade war between the United States and China, as both countries intensified tariff hikes.
Crude oil price drop crashes the naira
Analysts say the global tariff hikes slapped on countries by President Donald Trump will cause further shocks to economies and currency fluctuations.
On Wednesday, April 9, 2025, the naira traded at N1,644 per dollar from N1,615 the previous day.
Source: Twitter
The naira’s crash comes amid the intervention of the Central Central Bank of Nigeria (CBN) when it sold about $197.71 million to authorised dealers last Friday to boost liquidity.
CBN said the Nigerian forex market is built to withstand macroeconomic shocks caused by global fluctuations.
JP Morgan hails Nigeria's net FX reserves
Legit.ng earlier reported that JP Morgan, the American investment banker, has said the change in the leadership of the Nigerian National Petroleum Company Limited (NNPC) and the release of Nigeria’s net foreign exchange reserves (NFER) are changing the tide in the market.
Amid increasing global uncertainty, JP Morgan upheld a positive rating on the Nigerian market, stating it is insulated from US slowdowns.
The company disclosed this in its note to investors on Wednesday, April 2, 2025, stating that the Nigerian market provided enough rate protection to ease potential FX losses.
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Source: Legit.ng
