The Central Bank of Nigeria (CBN) has announced a significant increase in personal remittance inflows, which rose to $20.93 billion in 2024, reflecting an 8.9 per cent year-on-year growth.
This is part of the country’s broader financial performance, as the CBN also reported a balance of payments surplus of $6.83 billion for the 2024 financial year.
In a statement released on Wednesday, April 9, the CBN attributed the improvement to a combination of macroeconomic reforms, stronger trade performance, and renewed investor confidence.
The statement, signed by Mrs. Hakama Sidi-Ali, the CBN’s Acting Director of Corporate Communications, highlighted the resilience of remittance inflows throughout the year, noting a 43.5 per cent increase in inflows via International Money Transfer Operators (IMTOs), which surged to $4.73 billion from $3.30 billion in 2023.
The growth in personal remittances was accompanied by a rise in official development assistance, which grew by 6.2 per cent to $3.37 billion.
The CBN highlighted that the performance of the current and capital accounts, which posted a combined surplus of $17.22 billion, was driven by a goods trade surplus of $13.17 billion.
Notably, Nigeria’s non-oil exports saw a robust increase of 24.6 per cent, reaching $7.46 billion, while gas exports jumped by 48.3 per cent to $8.66 billion. In contrast, the country’s petroleum imports fell by 23.2 per cent to $14.06 billion, and non-oil imports dropped by 12.6 per cent to $25.74 billion.
On the financial account, Nigeria saw a net acquisition of financial assets amounting to $12.12 billion. The CBN reported a remarkable growth in portfolio investment inflows, which more than doubled, rising by 106.5 per cent to $13.35 billion. Meanwhile, resident foreign currency holdings grew by $5.41 billion.
However, foreign direct investment (FDI) saw a decline of 42.3 per cent, dropping to $1.08 billion.
The country’s external reserves also showed a positive trend, growing by $6 billion to $40.19 billion by the end of 2024. This increase further strengthened Nigeria’s foreign exchange buffer.
In terms of data quality, the CBN reported significant improvements in reporting accuracy. Net errors and omissions dropped by 79.5 per cent, from $24.90 billion in 2023 to negative $5.10 billion in 2024. The bank attributed this decline to improved data capture and greater transparency.
In response to the figures, CBN Governor Olayemi Cardoso emphasised the significance of the country’s improved external finances.
“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,” Cardoso said.
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