CBN Records Surge in Dollar Inflow with Quadrupling Remittances

The Central Bank of Nigeria (CBN) has reported a substantial increase in foreign exchange inflow for February 2024. This surge is attributed to a significant rise in remittance payments by Nigerians living abroad and heightened interest from foreign portfolio investors in acquiring naira assets.

According to CBN data, overseas remittances soared to an impressive $1.3 billion in February, marking a fourfold increase from the $300 million received in January. Simultaneously, foreign investors injected over $1 billion into Nigerian assets last month, contributing to a total portfolio inflow of at least $2.3 billion recorded in 2024, compared to $3.9 billion for the entirety of the previous year.

Mrs. Hakama Sidi Ali, the Bank’s Acting Director of Corporate Communications, revealed in a statement, “The Bank’s data indicates that overseas remittances rose to $1.3 billion in February 2024, more than four times the $300 million received in January. Foreign investors purchased more than $1 billion of Nigerian assets last month, with total portfolio flows of at least $2.3 billion recorded thus far in 2024 compared to $3.9 billion seen in total for last year.”

Furthermore, Ali highlighted the continuation of higher foreign exchange inflows into March 2024. This surge is attributed to increased investor interest in short-term sovereign debt following a recent adjustment to benchmark interest rates.

Notably, the spokesperson stated that government securities issuances had been significantly oversubscribed, with foreign investors constituting over 75% of bids received at auctions conducted on March 1 and 6, 2024.

This positive trend aligns with CBN Governor Olayemi Cardoso’s strategic efforts outlined during the last month’s Monetary Policy Committee meeting and a conference call with foreign portfolio investors. Governor Cardoso emphasized the objective of boosting reserves, ensuring market functionality, and building investor confidence, stating, “All the different measures we have taken to boost reserves and create more liquidity in the markets have started to pay off.”