"Why is Naira Struggling?": CBN Records Highest Amount of Dollars to Enter Nigeria in One Month

• The CBN has reported a significant increase in remittance inflows of about $553 million in July 2024
• The figure, which marks the highest monthly total inflows on record, saw a hike of 130% compared to the same period in 2023
• The apex bank attributes the surge to policy measures, which include granting access to new IMTOs

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.

The Central Bank of Nigeria (CBN) has announced a notable surge in remittance inflows, which climbed to $553 million in July 2024, marking a 130% increase compared to the same period in 2023.

This was disclosed in a statement by the Acting Director of Corporate Communications, Hakama Sidi Ali.

Remittance inflow surges

According to Ali, the figure represents the highest monthly inflow on record and underscores the CBN's ongoing efforts to boost liquidity in Nigeria’s foreign exchange market.

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The remarkable growth in remittance inflows is credited to various policy initiatives introduced by the CBN, including the issuance of licenses to new International Money Transfer Operators (IMTOs), the adoption of a willing buyer-willing seller model, and ensuring timely access to naira liquidity for IMTOs.

Diaspora remittances play a vital role in providing foreign exchange for Nigeria, complementing both foreign direct investment and portfolio investments.

The CBN stated that its initiatives have contributed to the sustained increase in these inflows, which is in line with the institution’s goal of doubling formal remittance receipts within a year.

The statement partly read:

“The increase in remittances is a strong testament to the success of the CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.”

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Recent figures from the National Bureau of Statistics (NBS) show that Nigeria's year-on-year headline inflation rate decreased in July 2024, marking the first decline in 19 months.

The CBN noted that this development is a clear sign that its monetary policy tightening measures are yielding positive outcomes.

Reactions trail CBN's report

The latest announcement by the CBN has generated mixed reactions from Nigerians on social media.

While some have commended the CBN for a job well done, others have expressed their doubt about the recent report.

Modern_Ustazz @Modern_ustazz said:

"Nice job Boss @Dattijo and team"

Edet Isang @EdetIsang1 said:

"This is encouraging. It is however unfortunate that same government that is smiling for this remittance is the one making difficult for Nigerian nurses to export their services and bring on the for ex."

Hon. Rilwan @rilwan_ola01 said:

"Yesterday, it was NNPC. Today , it’s CBN. You people sha won’t kill us with audio money. Na una time sha , enjoy it."

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Mosebolatan 🇳🇬🇨🇦 @OIOlawale said:

Remittances are very high

Balance of Trade is surplus

FPIs and FDIs are positive

Why is the Naira struggling?

Is it the FCY loans we are servicing?

Is it PTA/BTA, education or medical?

Is it bcos we import refined products?

Are there saboteurs the FG is ignoring?

Abdulrazaq Abdulqadri @AABDULQADR said:

"Nice one. But the issue is that the people have lost TRUST in everything that comes out from government."

Heaven Ambassador @hetchglobal said:

"Good one if it's not audio money. We can push hard and increase it to $1b monthly."

RevCo @officialrevcom said:

"CBN is another heavy corrupt government agency with their audio reports that does not reflect in the lives of Nigerian people."

Chukwuemeka Ndulue🇺🇲🇨🇦 @PM_ChukwuemekaN

"Weldone. Slow and steady."

Anthony @ae1tony said:

"Nothing changed! Remittances before were mostly off book, but now it’s recorded."

NNAEMEKA @NPaschals said:

"No impact on citizen."

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Potentia Amoris @DavidaTurris said:

"Audio inflows"

CBN fixes new capital requirements for IMTOs

Meanwhile, Legit.ng earlier reported that the CBN has set $1 million as the minimum share capital requirement for International Money Transfer Operators (IMTOs) in the country.

This was revealed in the bank's updated guidelines for IMTO operations, published on its website and signed by Hassan Mahmud, the Director of the Trade & Exchange Department.

The new regulation comes as part of a series of policy reforms to bolster Nigeria's foreign exchange market and promote remittances through legal and authorized channels.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng