Naira Gains against Dollar as CBN Reports Highest Remittance Inflows in 5 Years
- The naira regained its ground against the dollar in the official foreign exchange market on Thursday, 10, 2025
- The naira closed trading on Thursday at N1,636.500, up from N1,644 on the previous day
- The development comes as the Central Bank of Nigeria (CBN) reported the highest remittances in five years
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The naira rebounded against the dollar in the Nigerian Foreign Exchange Market (NFEM) on Thursday, April 10, 2025, after several days of decline.
At the end of trading, the naira gained N14.50 to close at N1,630.500 from N1,644 per dollar the previous day.
Source: Getty Images
The official and black markets gap narrows
Currency dealers quoted the dollar at a high of N1,636 and a low of N1,500, leaving a margin of N136 against the dollar.
However, the naira depreciated in the parallel segment of the foreign exchange market, trading at N1,615 per dollar from N1,600.
Consequently, the gap between the official and parallel markets grew to N15 from N44.
CBN reports highest remittances in five years
The development comes as 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.
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
Nigeria's remittances remained the highest in Africa, according to World Bank data on remittance inflows on the continent.
The global lender said that Ghana recorded $2.43 billion in 2023, from $2.07 billion in 2022, while South Africa saw 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 growing 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 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.
Source: Twitter
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.
JP Morgan predicts new naira exchange rate
Legit.ng earlier reported that JP Morgan, the American investment banker, had 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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Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Kola Muhammed (Copyeditor) Kola Muhammed is an experienced editor and content strategist who has overseen content and public relations strategies for some of the biggest (media) brands in Sub-Saharan Africa. He has over 5 years of experience in copyediting.
