Direct Remittances Soar by 3.74% to $1.855 Billion in Nine Months

Nigeria has seen a commendable surge in direct remittances with data released by the Central Bank of Nigeria (CBN) indicating a 3.74% increase in the first nine months of 2023 compared to the corresponding period in 2022.

The total direct remittances for this period rose to $1.855 billion, the CBN’s “international payment” data provides a detailed breakdown.

In January 2023, the figure stood at $79.2 million while $83.76 million was recorded in February. This was followed by $138.6 million filed in March and $159.04 million in April.

As the year progressed, remittance inflow surged to $202 million in May, $297.4 million in June and $241 million in the month of July.

The detailed breakdown reveals that August experienced the highest remittance inflow in 2023, totaling $591 million. However, September saw a contraction, recording the lowest remittance figure for the year at $71 million.

Financial analysts anticipate that direct remittances will continue to exhibit positive growth, driven by factors such as an increase in immigration, the removal of restrictions on domiciliary accounts, and the rebound of the global economy.

Head of Financial Institutions Ratings at Agusto & Co, Mr. Ayokunle Olubunmi, commented on the incentives contributing to the surge in remittances through official channels.

He highlighted the impact of a growing emigrant community, economic recovery globally, and the easing of restrictions on domiciliary accounts.

“In the near term, it is going to continue, especially as some of those who ‘Japa’ with loans would also be settling back in Nigeria once they settle down,” added Mr. Olubunmi, emphasizing the potential for sustained growth in direct remittances in the coming months.