Remittances from the Nigerian diaspora surged by 79% to $4.18 billion in the first three quarters of 2024, compared to $2.33 billion during the same period in 2023, according to the Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso.
Cardoso made the announcement at the Monetary Policy Stakeholders Forum in Abuja on Thursday, attributing the rise to key reforms introduced by the CBN over the past year.
He explained, “In addition to monetary policies, we implemented vital reforms to enhance the financial system and promote macroeconomic stability. These efforts led to a 79.4% increase in remittances through International Money Transfer Operators (IMTOs), reaching $4.18 billion in 2024’s first three quarters, compared to $2.33 billion in 2023.”
The CBN Governor acknowledged that the past year posed significant challenges, including persistent inflationary pressures from both domestic and global factors.
He elaborated: “The liquidity injections from unorthodox monetary policies, particularly post-COVID-19, created an excess that didn’t lead to corresponding productivity growth, fueling inflation and foreign exchange volatility.”
Cardoso pointed out that the excess liquidity in the system intensified demand-driven inflation, which was further exacerbated by structural supply-side issues.
This, he noted, highlighted the need for a coordinated approach to monetary policy to restore stability.
In response, the Monetary Policy Committee (MPC) initiated a tightening cycle, using traditional approaches.
Over 2024, the CBN raised the Monetary Policy Rate (MPR) by 875 basis points to 27.50% and increased the Cash Reserve Ratio (CRR) by 1,750 basis points to 50%. The MPR corridor was also adjusted.
Cardoso emphasized that without these measures, inflation could have reached 42.81% by December 2024.
While acknowledging that inflation erodes purchasing power and discourages investment, he affirmed the CBN’s commitment to managing disinflation carefully.
“We are committed to maintaining price stability, while minimizing adverse impacts on growth and livelihoods,” he concluded.
