Analysts say the rise in foreign remittances is a crucial source of FX earnings for the Nigerian economy.
Further analysis of the data also indicates that in the first five months of 2024, Nigeria received about $841.37 million in diaspora remittances.
In January, Nigeria’s diaspora remittances hit $138.56 million and dipped in February to $39.14 million, showing seasonal variations in remittances.
In March this year, diaspora remittances climbed to $104.9 million, showing a rebound in the flow of funds. The trend continued into April, with $193.31 million in diaspora remittances.
May recorded the highest increase in diaspora remittance at $365.44 million, the highest monthly figure this year.
Market watchers say this increase in May 2024 could be due to several factors, including economic conditions where diaspora Nigerians live and enhanced remittance channels.
The CBN recently granted licenses to 14 new international money transfer operators (IMTOs) to double remittances into the country.
Reports say the CBN governor, Olayemi Cardoso, disclosed that the new licenses are expected to boost competition and lower the cost of transactions, attracting more remittances via formal avenues.
According to the CBN boss, the apex bank has identified an important element of the inflows into the country, saying it is about six percent of Nigeriaâs GDP.
The development comes as forex turnover in the Nigerian FX market surged to 139.67% on Tuesday, June 11, 2024, to hit $373.97 million.
The turnover at NAFEM boosted the nairaâs performance against the US dollar, which appreciated to trade at N1,473.66 per dollar.
The rise in FX supply indicates renewed confidence in the market, which has shifted market sentiments.
TimesNow.com.ng earlier reported that Nigeria recorded $282.61 million as direct forex remittances in the first quarter of 2024.
The information was obtained from the Central Bank of Nigeriaâs (CBN) website on Monday, May 13, 2024.
Forex remittance is the money transferred from Nigerians abroad to family or other individuals.
Source: TimesNow.com.ng
