Nigeria’s economy has witnessed a substantial boost in foreign exchange inflows, with a 41.6% year-on-year increase to $47.73 billion in the first half of 2024. According to the Central Bank of Nigeria’s (CBN) quarterly Economic Statistics, this surge is driven by increased autonomous and CBN-generated inflows.
The data reveals a 34.6% year-on-year rise in net forex inflow through autonomous sources to $25.7 billion, while inflows through the CBN grew by 31.7% to $16.6 billion. Gross inflows through autonomous sources also increased by 47.6% to $31.15 billion.
International Money Transfer Operators (IMTOs) saw significant growth, with inflows rising 47% year-on-year to $2.33 billion. This increase follows the CBN’s measures permitting eligible IMTOs access to naira liquidity at the official window, aimed at making the forex markets more efficient and increasing remittance flows through formal channels.
The CBN’s efforts to stabilize the FX market and attract foreign investment appear to be yielding results. Experts attribute the growth to the bank’s monetary policies, which have enhanced FX liquidity. This development is expected to stabilize the Naira and support economic growth.
However, forex outflows from the economy also increased by 16.3% year-on-year to $20.12 billion, with outflow through autonomous sources jumping 160.8% to $5.4 billion.
The CBN’s measures are crucial in addressing Nigeria’s economic challenges, including FX scarcity and declining remittances. The increased forex inflows are expected to support businesses, investors, and individuals relying on foreign exchange.
