Direct foreign remittance to Nigeria soared in the month of May bringing the total remittance recorded from the beginning of the year to $841.37 million even as the payments for foreign debt servicing stood at $2.19 billion as at the end of last month.
Data by the Central Bank of Nigeria (CBN) showed that total remittances as well as foreign debt service rose to its highest level for 2024 in May with remittances standing at $365.44 million and debt payout standing at $854.36 million last month.
The CBN data showed that foreign debt service payment was at its lowest in the month of April when the country made a payout of $215.2 million. Debt service payout had dropped from $560.518 million in January to $283.219 million in February, and further declined to $276.167 million in March.
According to the data, foreign exchange remittance was at its lowest level this year in the month of February when $39.147 million was recorded. A total of $138.56 million had been recorded in January before a sharp decline in February.
Total direct remittances had risen significantly in March to $104.906 million in March before a further improvement in April to $193.313 million. The $365.44 million remittance flow was the highest level in the course of this year.
The CBN Governor, Dr Olayemi Cardoso had mentioned the plan of the apex bank to double remittance inflow in the course of the year. Noting that Nigeria had a significant amount of remittances from the diaspora, he said “we have identified that this is a very critical element of the inflows coming into the country. It is estimated to represent about six per cent of our GDP. And so, we felt that it was important from the centre bank perspective, to have a strategy to engage this sector.
“Now within that, the IMTOs play a very major role, and so for us, it was important for us to meet them. We had a number of private discussions, understanding what their problems were, and seeing how we could help them to ensure that they are more effective in the things they do. And of course, we shared the challenges that we saw in the future for the country and that everybody had a role to play. And I must say that they responded very positively.
“Two aspects that concern them, one was the issue of the price, commissions, and the charges they are having to pay and of course, the issue of at some point in time the rates. And since the rates have converged, that has become less of an issue but they are encouraged to use your official channels to advance the cause of the very laudable efforts that we are making to enhance the flows of foreign currency coming in.
“I am very interested in how we make progress on this and I’m certain that we will be successful in doing it. Our target is to double the remittance flow within a year. And as I said, we have started that process of engaging to ensure that it happens.”
