Photo caption: CBN building
The Central Bank of Nigeria has said that personal remittance inflows rose to $20.93bn in 2024, reflecting an 8.9 per cent increase year-on-year.
This was contained in a statement issued on Wednesday by the apex bank while announcing a balance of payments surplus of $6.83bn for the 2024 financial year.
The statement was signed by the CBN’s Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali.
The figure marks a significant turnaround from deficits of $3.34bn and $3.32bn recorded in 2023 and 2022, respectively.
The CBN said the improvement was due to a mix of macroeconomic reforms, stronger trade performance, and renewed investor confidence.
According to the statement, remittance inflows remained resilient throughout the year, with inflows through International Money Transfer Operators increasing by 43.5 per cent to $4.73bn, up from $3.30bn in the previous year.
The statement read, “Remittance inflows remained resilient, with personal remittances rising by 8.9 per cent to $20.93bn.
“International Money Transfer Operator inflows surged by 43.5 per cent to $4.73bn, up from $3.30bn in 2023, reflecting stronger engagement from the Nigerian diaspora. Official development assistance also rose by 6.2 per cent to $3.37bn.”
The current and capital account recorded a surplus of $17.22bn, underpinned by a goods trade surplus of $13.17bn.
Non-oil exports rose by 24.6 per cent to $7.46bn, while gas exports increased by 48.3 per cent to $8.66bn.
Meanwhile, petroleum imports fell by 23.2 per cent to $14.06bn, and non-oil imports declined by 12.6 per cent to $25.74bn.
On the financial account side, Nigeria posted a net acquisition of financial assets amounting to $12.12bn.
Portfolio investment inflows more than doubled, rising by 106.5 per cent to $13.35bn, while resident foreign currency holdings grew by $5.41bn.
However, foreign direct investment dropped by 42.3 per cent to $1.08bn.
The country’s external reserves also grew by $6bn to $40.19bn by the end of 2024, strengthening the country’s foreign exchange buffer.
In terms of data quality, the CBN reported a marked improvement in reporting accuracy. Net errors and omissions declined by 79.5 per cent to negative $5.10bn in 2024, down from $24.90bn in 2023, which the bank attributed to improved data capture and transparency.
Reacting to the figures, the Governor of the CBN was quoted as saying, “The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability. This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
The bank further attributed the improved external position to policy reforms, including the liberalisation and unification of the foreign exchange market, a disciplined monetary policy stance, and coordinated fiscal and monetary interventions.
