Godsent Ogbebor
Nigeria’s Remittance Inflows Hit $20.93bn in 2024 Amid Balance of Payments Surplus — CBN
The Central Bank of Nigeria (CBN) has announced that personal remittance inflows surged to $20.93 billion in 2024, marking an 8.9% increase compared to the previous year.
This growth helped drive a balance of payments surplus of $6.83 billion, the first surplus in years and a major reversal from deficits of $3.34 billion in 2023 and $3.32 billion in 2022.
The CBN disclosed this in a statement on Wednesday signed by its Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali. The apex bank credited the turnaround to improved macroeconomic policies, robust trade performance, and revived investor confidence.
“Remittance inflows remained resilient, with personal remittances rising by 8.9% to $20.93bn,” the statement read. “International Money Transfer Operator inflows surged by 43.5% to $4.73bn, up from $3.30bn in 2023, reflecting stronger engagement from the Nigerian diaspora.”
The current and capital accounts registered a surplus of $17.22 billion, largely supported by a goods trade surplus of $13.17 billion. Non-oil exports climbed 24.6% to $7.46 billion, while gas exports spiked by 48.3% to $8.66 billion.
Petroleum imports fell by 23.2% to $14.06 billion, and non-oil imports dropped by 12.6% to $25.74 billion, indicating stronger domestic substitution and trade balance.
On the financial account, Nigeria recorded a net acquisition of financial assets totaling $12.12 billion. Portfolio investment inflows jumped by 106.5% to $13.35 billion, and resident foreign currency holdings increased by $5.41 billion. However, foreign direct investment dipped by 42.3% to $1.08 billion.
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External reserves grew by $6 billion, reaching $40.19 billion by the end of 2024, boosting Nigeria’s foreign exchange stability.
The CBN also noted an improvement in data quality, with net errors and omissions dropping by 79.5% to -$5.10 billion, down from -$24.90 billion in 2023. This was attributed to enhanced data capture and reporting transparency.
Reacting to the positive figures, CBN Governor Olayemi Cardoso stated, “The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability.
This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
The bank linked the improved external position to key reforms such as the unification of the foreign exchange market, disciplined monetary policy, and coordinated fiscal and monetary interventions.
