The Central Bank of Nigeria (CBN) has announced a remarkable increase in diaspora remittances, reaching $4.22 billion between January and October 2024. This figure represents a significant 61.1% growth compared to the $2.62 billion recorded during the same period in 2023.
CBN Governor, Olayemi Cardoso, disclosed this during an interactive session with the Senate Committee on Banking, Insurance, and Other Financial Institutions at the National Assembly. Cardoso attributed this growth to improved remittance systems, favorable policies implemented by President Bola Tinubu, and the rising confidence of Nigerians abroad in contributing to national development.
Monthly remittance analysis shows a steady increase, with figures rising from $336 million in September 2024 to $402 million in October 2024. Cardoso further projected that remittance inflows would continue on an upward trajectory, potentially exceeding expectations by the end of the year.
Additionally, Cardoso revealed that Nigeria’s external reserves had grown to $42.01 billion as of December 12, 2024, up from $38.35 billion in September 2024. This increase, driven by oil-related tax receipts and other revenues, positions the reserves to finance over nine months of imports, far exceeding international benchmarks.
The governor also highlighted ongoing efforts to stabilize the foreign exchange market, recapitalize the banking sector, and combat illegal cash distribution, with a hefty N150 million fine for banks caught in malpractice.
In his closing remarks, Cardoso expressed optimism about Nigeria's economic outlook, projecting further growth and stabilization in 2025. His detailed presentation earned praise from the Senate Committee, signaling confidence in the measures being implemented to bolster the economy.
Highlighting the importance of diaspora contributions, Cardoso pointed out that these remittances play a vital role in poverty alleviation, improved nutrition, and education in low- and middle-income households. This aligns with global findings from the World Bank, which estimates that the Nigerian diaspora contributes between $20 billion and $25 billion annually.
This upward trend in remittance inflows underscores the critical role of the Nigerian diaspora in driving economic growth and fostering national development.
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