Nigeria recorded $282.61m in diaspora remittance in Q1 2024.
Nigeria recorded a total direct foreign exchange remittance of $282.61 million in the first quarter of 2024.
The figure shows a decline of $18.96 million or 6.28% when compared to $301.57 million diaspora remittances obtained in Q1 2023, according to the Central Bank of Nigeria data on its website.
Foreign exchange remittance refers to money transfers from other countries to family members or other individuals in the country.
The CBN data covers direct diaspora remittances into Nigeria facilitated through international money transfer operators.
Breakdown of remittance payments
January 2023 saw remittances totaling approximately $79.19 million. In contrast, January 2024 experienced a substantial increase, with remittances reaching nearly $138.56 million. This represents a growth of approximately 75% year-over-year for January alone, according to nairametrics.
February 2023 recorded remittances of about $83.76 million, whereas February 2024 saw a significant decline to just $39.15 million. This sharp decrease of more than 53% in February’s remittances year-over-year suggests a pronounced volatility in remittance inflows during this month.
March 2023 was a strong month with remittances peaking at $138.63 million. However, March 2024 experienced a decrease, with remittances totaling $104.91 million, which is a drop of approximately 24% compared to the previous year.
The year-on-year data show that fluctuations in remittance flows could have been influenced by external factors, political changes, and additional external variables between these periods.
According to the CBN Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali on Wednesday, the apex bank has activated plans to double foreign-currency remittance flows through formal channels by granting 14 new (IMTOs) Approval-in-Principle.
She said “We are wasting no time driving progress to remove any bottlenecks hindering flows through formal channels permanently. We have a determined pathway and a sequenced approach to tackling all challenges ahead, working hand in hand with key stakeholders in the remittance industry.”
Ali stressed that increasing formal remittance flows will mitigate volatility in Nigeria’s exchange caused by external factors, such as fluctuations in foreign investment and oil revenues.
The CBN has set a minimum capital requirement for international money transfer operators, i.e. $1 million to foreign entities and the corresponding amount in domestic IMTOs.
The apex bank had in a circular issued in January, removed the previous cap on exchange rates quoted by IMTOs removing the earlier limit on exchange rate quotes from IMTOs.
In addition, it increased the application fee for an IMTO licence from N500,000 in 2014 to N10 million in the revised guidelines. This is an increase of about 1,900% in about 10 years.
