A new report by the Central bank of Nigeria CBN says the net foreign exchange inflow rose by 65.7%, hitting $46.92 in the first 10 months of 2024. The report indicates an increase in the foreign exchange inflow from $28.31 billion in 2023 to over $40 billion in 2024.
Also, according to the report, total forex inflow to the economy rose by 41 per cent year-on-year, to $79.8 billion in the first 10 months of 2024 from $55.57 billion in 2023. However, forex outflows from the economy fell by 1.4 per cent YoY to $29.84 billion in 10m’24 from N30.29 billion in 10m’23.
The inflows were mainly from autonomous sources and through the CBN. The inflow from autonomous sources rose by 0.06% to $35.82 billion in 2024 from $34.4 billion in 2023. Meanwhile, the inflows through CBN rose by 55% to $32.94 billion from $21.25 billion in 2023. In addition, there was a 1.11% decline in the outflows from CBN as the figure dropped from $26.03 billion to $25.74 billion.
The increased FX inflows have been largely attributed to some of the reforms made by the CBN to stabilise the market and restore investors confidence.
The reforms implemented by the Central Bank have focused on optimising processes, integrating additional International Money Transfer Operators (IMTOs), and strengthening initiatives to boost the availability of foreign currencies.
These actions have clearly yielded positive results, as demonstrated by the significant rise in remittance inflows. The increase in remittance inflows is vital for Nigeria’s economy, as it offers essential foreign exchange and bolsters household income.
