Diaspora Remittances Surge by 61% – CBN

The Central Bank of Nigeria (CBN) has reported a significant increase in diaspora remittances, which rose to $4.22 billion between January and October 2024, compared to $2.62 billion during the same period in 2023. This represents a year-on-year growth of approximately 61.1%.

CBN Governor, Olayemi Cardoso, disclosed these figures during an interactive session with the Senate Committee on Banking, Insurance, and Other Financial Institutions at the National Assembly on Wednesday. He attributed the rise to enhanced remittance system efficiency, supportive policies implemented by President Bola Tinubu’s administration, and increased trust from Nigerians in the diaspora.

Monthly Breakdown
Remittance inflows climbed from $336 million in September 2024 to $402 million in October 2024. Governor Cardoso expressed confidence that the upward trend would continue through the end of the year.

Global Context
According to the World Bank, Nigerian diaspora remittances amount to $20–$25 billion annually, serving as a crucial source of household income for low- and middle-income countries. These funds contribute to poverty reduction, improved nutrition, and enhanced educational outcomes in disadvantaged households.

External Reserves
Governor Cardoso also highlighted improvements in Nigeria’s external reserves, which rose from $38.35 billion on September 30, 2024, to $42.01 billion by December 12, 2024. He explained that this increase resulted from crude oil-related tax receipts and third-party transactions in Q3 2024.

With external reserves capable of financing over nine months of imports—significantly above the three-month international benchmark—Nigeria is better positioned to weather economic shocks.

New Policies and Outlook
Addressing concerns over cash scarcity, the CBN Governor reaffirmed strict penalties, including a fine of N150 million for banks caught illegally distributing new Naira notes. He also emphasized ongoing measures aimed at stabilizing the economy, projecting a brighter economic outlook for 2025.

Key initiatives include forex market stabilization, banking sector recapitalization, and growth in the services sector, all of which signal recovery and stability.

Senate Response
Senator Adetokunbo Abiru (APC, Lagos East), Chairman of the Committee, commended the CBN Governor for his comprehensive presentation, though Senate protocol prohibited applause.

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