- The Central Bank of Nigeria said personal remittances increased by 8.9 per cent year-on-year to $20.93 billion in 2024
- The CBN said there were increases in other external financial positions
- It said the improvement was a result of a combination of macroeconomic reforms, stronger trade performance, and renewed investor confidence
The Central Bank of Nigeria (CBN) says personal remittance inflows increased by 8.9 per cent year-on-year to $20.93 billion in 2024.
The CBN disclosed this in a statement issued on Wednesday, April 9, and signed by the acting Director of Corporate Communications, Mrs Hakama Sidi-Ali.
The statement also disclosed a balance of payments surplus of $6.83 billion for the 2024 financial year.
The increase in personal remittances in 2024 reflects a turnaround from deficits of $3.34 billion and $3.32 billion recorded in 2023 and 2022, respectively.
The statement added that remittance inflows remained resilient throughout the year, with inflows through International Money Transfer Operators (IMTOs) increasing by 43.5 per cent from $3.30 billion in 2023 to $4.73 billion in 2024.
“Remittance inflows remained resilient, with personal remittances rising by 8.9 per cent to $20.93 billion.
“International Money Transfer Operator inflows surged by 43.5 per cent to $4.73 billion, up from $3.30 billion in 2023, reflecting stronger engagement from the Nigerian diaspora.
“Official development assistance also rose by 6.2 per cent to $3.37 billion,” the statement read.
Details of other external financial positions in 2024
The statement further showed that the current and capital accounts recorded a surplus of $17.22 billion, driven by a $13.17 billion goods trade surplus.
It said non-oil exports rose by 24.6 per cent to $7.46 billion, while gas exports increased by 48.3 per cent to $8.66 billion.
According to the statement, petroleum imports dropped by 23.2 per cent to $14.06 billion, reflecting the impact of reforms in the oil and gas sector aimed at reducing fuel importation.
It also stated that non-oil imports also declined by 12.6 per cent to $25.74 billion in 2024.
Also, Nigeria posted a net acquisition of financial assets amounting to $12.12 billion in 2024.
The CBN said portfolio investment inflows more than doubled, rising by 106.5 per cent to $13.35 billion, while resident foreign currency holdings increased by $5.41 billion.
Foreign direct investment, on the other hand, decreased by 42.3 per cent to $1.08 billion in 2024.
“Portfolio investment inflows more than doubled, increasing by 106.5 per cent to $13.35 billion, while resident foreign currency holdings grew by $5.41 billion, indicating stronger confidence in domestic economic stability.
“Although foreign direct investment fell by 42.3 per cent to $1.08 billion, the overall financial account posted notable gains,” the CBN stated.
The apex bank said the country’s external reserves increased by $6 billion to $40.19 billion by the end of 2024.
Improvements show economic reforms are paying off – CBN
The apex bank said the improvement in remittances and external position was a result of a combination of macroeconomic reforms, stronger trade performance, and renewed investor confidence.
The CBN said its policy reforms, including the liberalisation and unification of the foreign exchange market, a disciplined monetary policy stance, and coordinated fiscal and monetary interventions, were paying off.
“The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability.
“This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike,” the CBN governor, Olayemi Cardoso, was quoted as saying.
IMTO inflows increased by 63.7% in first 9 months of 2024 – CBN
Meanwhile, TheRadar earlier reported that the Central Bank of Nigeria (CBN) stated that International Money Transfer Operator (IMTO) inflows increased by 63.7 per cent in the first nine months of 2024.
According to the latest quarterly statistical bulletin of the CBN, IMTO inflows rose from $2.33 billion during the same period in 2023 to $3.82 billion in 2024.
