The Central Bank of Nigeria (CBN) has announced a partnership with international money transfer companies to double remittances to Nigeria. This collaborative effort aims to significantly increase the flow of remittances into the country, which is crucial for Nigeria’s economy. The CBN Governor, Yemi Cardoso, made the announcement in Washington DC, stating that a task force has been established to oversee the partnership and report directly to his office. Cardoso expressed confidence in the naira, declaring it the best-performing currency globally as of April 2024.
He attributed the naira’s strength to the CBN’s efforts to stabilize the foreign exchange market and improve the business environment. The naira’s appreciation is expected to make it easier for Nigerians living abroad to send money back home, which will in turn boost remittances to Nigeria. Vice President Kashim Shettima also expressed optimism about the naira’s appreciation, predicting that it will continue to strengthen against the dollar. “The Naira will continue to appreciate against the dollar in the coming days and weeks,” Shettima said. This positive outlook is expected to boost investor confidence and increase the flow of foreign exchange into the country.
Naira gain attributed to int’l bullish sentiment.
This partnership with international money transfer companies is part of the CBN’s efforts to consolidate the gains made in the foreign exchange market. In the six months since assuming office, Cardoso has faced significant challenges, including Inflation and foreign exchange market volatility. However, with relative stability now achieved, the CBN has transitioned from firefighting to strategic planning across key areas. Cardoso highlighted the importance of improving the ease of doing business in Nigeria, consolidating and sustaining gains through an efficient and transparent market system, and boosting financial and economic inclusion for small businesses and households. He emphasized the need to leverage Technology and remote banking to reduce transaction costs and expand accessibility to the financial system.
Meanwhile, the CBN governor disclosed that the value of the naira improved significantly in April, emerging as the best-performing currency globally. He attributed this to bullish sentiment from leading international Investment institutions, resulting in robust activities in the FX market with turnover reaching levels not seen in over seven years. The CBN governor expressed confidence in the liquidity boost, stating that it would instil confidence among investors, businesses, and other partners, ensuring fluidity in their interactions with Nigeria’s FX markets. The CBN’s efforts to stabilize the foreign exchange market and improve the business environment are expected to increase the flow of remittances into the country.
Partnership will ease sending money home from abroad.
Remittances play a vital role in Nigeria’s economy, accounting for a significant portion of the country’s foreign exchange earnings. In 2022, remittances to Nigeria stood at $23.5 billion, accounting for a significant portion of the country’s foreign exchange earnings. The CBN’s partnership with international money transfer companies is expected to increase the flow of remittances into the country, providing a much-needed boost to the economy. The partnership is also expected to reduce the cost of transactions.
According to the CBN governor, the partnership will leverage technology and remote banking to reduce transaction costs and expand accessibility to the financial system. This will make it easier for Nigerians living abroad to send money back home, which will in turn increase the flow of remittances into the country. The CBN’s partnership with international money transfer companies is a significant step towards achieving its goal of increasing remittances to Nigeria. The partnership is expected to increase the flow of remittances into the country, reduce the cost of transactions, and provide a much-needed boost to the economy.
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With the naira appreciating against the dollar, the partnership is expected to have a positive impact on the economy, and it is a significant step towards achieving the CBN’s goal of increasing remittances to Nigeria. In addition to increasing the flow of remittances, the CBN’s partnership with international money transfer companies is also expected to improve the overall business environment in Nigeria. The partnership is expected to increase the flow of foreign exchange into the country, which will in turn improve the availability of foreign exchange for businesses and individuals. This will make it easier for businesses to import goods and services, and for individuals to access foreign exchange for their needs.