The Central Bank of Nigeria of Nigeria (CBN) has disclosed that diaspora remittances via International Money Transfer Operators (IMTOs) reached $4.22 billion from January to October, more than the $2.62 billion reported in the same period last year.
The CBN governor, Olayemi Cardoso, stated this during a session with the Senate Committee on Banking, Insurance, and Other Financial Institutions on Wednesday, December 18, 2024.
Remittance inflows rise to new levels
The apex bank’s chief said the remittance spike represents about 61.1% in 12 months.
He noted that remittances increased from $336.61 million in September to $402.38 million in October.
According to him, the increase is due to enhanced efficiency in the remittance process, the positive impact of government policies, and the rising confidence of Nigerians in the diaspora in the economy.
Cardoso further projected an increase in inflows by the year’s end following the current rate.
World Bank projects more inflows
BusinessDay reports that the World Bank has said diaspora Nigerians remit between $20 and $25 billion yearly, primarily via private equity investments.
The World Bank stressed that remittances are crucial sources of household income for low—and middle-income countries. They play a key role in easing poverty, improving nutrition, and achieving better outcomes.
CBN had projected doubling remittances by increasing the number of licensed IMTOs in the country. The bank approved more IMTOs to achieve the objective.
Analysts laud CBN’s policy
Investment analysts say the new move signals hope for the economy and the local currency, the naira.
According to them, it will positively impact the naira’s value and improve FX liquidity.
Nnanna Ezeigbo, a forex broker and investment expert, said the development would ripple effect on the economy, improve the naira’s value, and ease the FX crunch.
“These inflows have happened since the CBN approved more IMTOs in the last 12 months.
The CBN had projected double inflows via IMTOs, and it seems they are on the path to achieving it,” Ezeigbo said.
Nigerian banks lose N42.33 billion in 6 months
Legit previously reported that financial institutions in Nigeria lost a staggering N42.33 billion to fraud in the first six months of this year.
Reports from the Financial Institutions Training Centre (FITC) stated this in its fraud report in the review period.
FITC said fraud in bank branches rose 31% to N42.2 billion in the second quarter of the year compared to N133.9 million in the same period in 2023.
