The Central Bank of Nigeria has announced a significant rise in personal remittance inflows, which reached $20.93 billion in 2024, reflecting an 8.9% increase compared to the previous year.
This announcement was made in a statement released on Wednesday by the CBN, which also revealed a balance of payments surplus of $6.83 billion for the 2024 financial year.
The statement was signed by Mrs. Hakama Sidi-Ali, the Acting Director of Corporate Communications at the CBN.
This achievement marks a notable improvement from the deficits of $3.34 billion in 2023 and $3.32 billion in 2022. The CBN credited the positive shift to a combination of macroeconomic reforms, stronger trade performance, and renewed investor confidence.
The statement highlighted that remittance inflows remained robust throughout the year, with inflows through International Money Transfer Operators surging by 43.5%, reaching $4.73 billion, up from $3.30 billion in 2023.
The CBN stated, “Remittance inflows remained resilient, with personal remittances rising by 8.9% to $20.93bn. International Money Transfer Operator inflows surged by 43.5% to $4.73bn, up from $3.30bn in 2023, reflecting stronger engagement from the Nigerian diaspora. Official development assistance also rose by 6.2% to $3.37bn.”
The current and capital accounts recorded a surplus of $17.22 billion, supported by a goods trade surplus of $13.17 billion. Non-oil exports saw an increase of 24.6%, reaching $7.46 billion, while gas exports climbed by 48.3%, totaling $8.66 billion.
Petroleum imports, however, declined by 23.2%, totaling $14.06 billion, and non-oil imports decreased by 12.6%, amounting to $25.74 billion.
On the financial account, Nigeria recorded a net acquisition of financial assets of $12.12 billion.
Portfolio investment inflows saw an impressive growth of 106.5%, reaching $13.35 billion, while resident foreign currency holdings increased by $5.41 billion. However, foreign direct investment saw a significant drop, falling by 42.3% to $1.08 billion.
The country’s external reserves rose by $6 billion to $40.19 billion by the end of 2024, reinforcing Nigeria’s foreign exchange buffer.
The CBN also reported substantial improvements in data quality, with net errors and omissions declining by 79.5%, dropping to negative $5.10 billion in 2024 from $24.90 billion in 2023.
The bank attributed this improvement to better data capture and transparency.
Reacting to the figures, the Governor of the CBN remarked, “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 CBN further attributed the improved external position to key policy reforms, including the liberalization and unification of the foreign exchange market, a disciplined monetary policy stance, and coordinated fiscal and monetary interventions.
