Remittances from the Nigerian diaspora through International Money Transfer Operators experienced a significant boost in the first nine months of 2024, reaching $4.18 billion.
This marks a substantial 79.4 percent increase compared to the $2.33 billion recorded in the same period of 2023.
The Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, highlighted this development while speaking at the Monetary Policy Stakeholders Forum in Abuja.
He attributed the remarkable growth to the series of financial reforms introduced by the apex bank over the past year.
Cardoso emphasized, “Beyond monetary policy, the bank undertook critical reforms to strengthen the financial system and ensure macroeconomic stability. This reform yielded tangible results, with remittances through IMTOs rising 79.4 percent in the first three quarters of 2024 to US$4.18 billion, compared to US$2.33 billion in the same period of 2023.”
Reflecting on the challenges faced during the year, the CBN chief pointed out that inflationary pressures persisted, fueled by both global and domestic disruptions.
He noted that unconventional monetary policies implemented since the COVID-19 pandemic had injected excess liquidity into the economy, which did not correspond with productivity growth, thereby intensifying inflation and foreign exchange volatility.
He said, “The liquidity injections associated with unorthodox monetary policies, particularly since the COVID-19 pandemic, have created a significant overhang. While these measures were intended to cushion immediate shocks, they did not translate into commensurate productivity growth, fueling inflationary pressures and heightened foreign exchange volatility.”
He further explained that surplus naira liquidity had contributed to demand-driven inflation, compounded by structural deficiencies in supply.
This situation, he stressed, underscores the need for a disciplined and coordinated monetary policy approach to restore economic stability.
To address these challenges, the CBN’s Monetary Policy Committee adopted a tightening strategy through conventional measures.
Cardoso detailed, “In response, the Monetary Policy Committee initiated a tightening cycle using orthodox approaches. Throughout 2024, the bank implemented several bold policy measures across six MPC meetings, including raising the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50 percent, increasing the Cash Reserve Ratio (CRR) of Other Depository Corporations (ODCs) by 1750 basis points to 50.00 percent, and adjusting the asymmetric corridor around the MPR.”
He further noted that without these interventions, inflation could have soared to 42.81 percent by December 2024.
Cardoso reaffirmed the CBN’s dedication to price and monetary stability, stating that inflation undermines purchasing power, discourages investment, and widens inequality.
While acknowledging the challenges of managing inflation, he maintained that a well-balanced policy approach is essential for long-term stability.
“CBN is fully committed to ensuring price stability while minimizing adverse effects on growth and livelihoods,” he concluded.
