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Global: CBN Projects Diaspora Remittances to Reach N31.787 Trillion

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CBN Projects Diaspora Remittances to Reach N31.787 Trillion
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The Central Bank of Nigeria (CBN) has forecasted that diaspora remittances will surge to N31.787 trillion when the fourth-quarter 2024 data is released.

This significant growth is attributed to key foreign exchange (FX) reforms implemented by the CBN to attract more FX inflows, strengthen supply, and stabilize the naira. Notably, remittances rose from N12.478 trillion in 2023 to N22.734 trillion by the end of Q3 2024, highlighting the impact of these policy measures.

Speaking at the 2025 Monetary Policy Forum, CBN Governor Olayemi Cardoso emphasized that without the bank’s strategic interventions, inflation could have skyrocketed to 42.81% by December 2024. He reaffirmed the CBN’s commitment to curbing inflation in 2025 through orthodox monetary policies.

Throughout 2024, the CBN took decisive steps across six Monetary Policy Committee (MPC) meetings, including:

  • Raising the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50%.
  • Increasing the Cash Reserve Ratio (CRR) of Other Depository Corporations (ODCs) by 1,750 basis points to 50.00%.
  • Adjusting the asymmetric corridor around the MPR to fine-tune monetary conditions.

To enhance macroeconomic stability, the CBN undertook critical reforms, including the unification of multiple exchange rate windows to improve FX market efficiency. This led to a 79.4% increase in remittances via International Money Transfer Operators (IMTOs), reaching $4.18 billion in the first three quarters of 2024—up from $2.33 billion in the same period of 2023.

The apex bank also bolstered investor confidence by clearing a $7 billion FX backlog, improving market liquidity. It lifted restrictions on 41 items previously banned from the official FX market since 2015 and introduced new minimum capital requirements for banks, set to take effect in March 2026. These measures aim to fortify Nigeria’s financial sector and support its vision of achieving a $1 trillion economy.

Additionally, the CBN launched the Women’s Financial Inclusion Initiative (WIFI) under the National Financial Inclusion Strategy to bridge the gender gap in financial access. Another key reform was the introduction of the Nigeria Foreign Exchange Code, which promotes integrity, transparency, and efficiency in the FX market through six core principles designed to rebuild trust and boost confidence.

With these initiatives, the CBN remains committed to fostering economic stability, improving FX liquidity, and ensuring sustainable financial growth.

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