Nigeria’s foreign reserves rose to $40.08 billion on November 7, 2024, reaching their highest level in nearly two years, according to data by the Central Bank of Nigeria (CBN).
This milestone marks a significant increase driven by the CBN’s policies to enhance foreign currency inflows through formal channels.
Since September’s end, when reserves stood at $38.3 billion, steady growth has been recorded, reflecting a $1.7 billion increase by early November. This upward trend follows a dip below $34 billion earlier in 2024, a time when foreign exchange pressures and global oil market volatility weighed heavily on reserves.
The CBN’s remittance-targeted reforms and efforts to engage International Money Transfer Operators (IMTOs) and Nigeria’s diaspora have been instrumental in this rebound.
The sustained growth trajectory from $33.7 billion in June to $40.08 billion emphasises the effectiveness of the central bank’s policies underscoring the CBN’s commitment to maintaining naira stability and improving foreign exchange inflows.
During a recent symposium in Abuja, CBN Governor Olayemi Cardoso highlighted the impact of these efforts, noting that the reserve level represents the highest in nearly three years. “These reforms have started yielding positive results, with notable improvements in the FX market and a stabilisation of foreign reserves,” Cardoso stated.
He also reiterated the CBN’s dedication to further engaging Nigeria’s diaspora at the recent IMF and World Bank meetings in Washington, D.C., emphasising the role of diaspora inflows in Nigeria’s remittance recovery.
He said: “Nigeria has such a strong diaspora community here; in the earlier stages of the reforms, IMTOs were having issues transferring money back to Nigeria, and we felt it was important to engage them, and we did. As a result of that engagement, we identified particular problems, of which a lot of responsibility was shared. Things have since improved because as at the last meetings, which was, I think, April, monthly inflows were about $250 million, but as of September, it had risen to $600 million.
“With the recent announcement by Nigeria Interbank Settlement Systems (NIBBS) on Bank Verification Number (BVN), and other products that the banking industry is offering, and through engagement with the diaspora, we believe we will be able to move accordingly and again, rising from that engagement, we put our sights on increasing the inflows to $1 billion monthly and I’m confident that we will get there,” he explained.
