Nigeria: CBN Reports Quadrupling Remittances to $1.3 Billion in February

The Central Bank of Nigeria (CBN) has reported a remarkable increase in foreign exchange inflow into the economy during the month of February.

Mrs. Hakama Sidi, the Acting Director of the Corporate Communications Department of the CBN, revealed this in a statement issued on Friday in Abuja.

Sidi highlighted that the surge in forex inflow was notably driven by a substantial rise in remittance payments from Nigerians abroad and increased acquisitions of naira assets by foreign portfolio investors.

The apex bank’s data indicates a significant uptick in overseas remittances, reaching $1.3 billion in February, marking more than a fourfold increase from the $300 million received in January.

She further stated, “Foreign investors purchased more than one billion dollars of Nigerian assets last month, with total portfolio flows of at least 2.3 billion dollars recorded thus far in 2024 compared to 3.9 billion dollars seen in total for last year.”

Highlighting the momentum, Sidi noted that higher forex inflows have continued into March. This momentum is attributed to heightened investor interest in short-term sovereign debt following recent adjustments to benchmark interest rates. Additionally, government securities issuances have experienced significant oversubscription, with foreign investors contributing over 75 per cent of the bids received in auctions held on March 1 and 6.

Governor Cardoso of the CBN emphasized the commitment to exchange rate stabilization and strategies aimed at boosting confidence in the banking system and the overall economy. In a conference call with foreign portfolio investors, he set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.

Cardoso expressed optimism, stating, “All the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off. When people understand the real issues and see a strategy and a plan, things tend to calm down. Our objective today is to ensure that the market has supply, that the market functions, and that investors can come in and go out.”