Net foreign exchange inflows into Nigeria’s economy surged by 67.8% in the first half of 2024, reaching $27.6 billion compared to $16.44 billion in the same period of 2023.
According to data from the Central Bank of Nigeria (CBN), this increase was driven by a 34.6% year-on-year rise in net inflows from autonomous sources and a remarkable 170% increase in net forex inflows via the CBN.
Overall, total forex inflows to the economy rose by 41.6%, totaling $47.73 billion in H1 2024, up from $33.7 billion in H1 2023. Gross inflows through autonomous sources alone climbed by 47.6% year-on-year, reaching $31.15 billion in H1 2024, up from $21.16 billion the previous year.
However, forex outflows also increased, rising by 16.3% year-on-year to $20.12 billion in H1 2024, up from $17.3 billion in H1 2023. Notably, outflows through autonomous sources experienced a sharp rise of 160.8%, reaching $5.4 billion in H1 2024, compared to $2.07 billion in H1 2023.
Consequently, net forex inflows through autonomous sources increased by 34.6% year-on-year, totaling $25.7 billion in H1 2024, compared to $19.09 billion in the previous year.
The data indicated that inflows through the CBN grew by 31.7% year-on-year, amounting to $16.6 billion in H1 2024, up from $12.6 billion in H1 2023. In contrast, outflows through the CBN decreased by 15%, falling to $14.7 billion in H1 2024 from $17.29 billion in H1 2023.
This resulted in net forex inflows through the CBN rising significantly by 170% year-on-year to $1.86 billion in H1 2024, reversing a previous negative balance of -$2.65 billion in H1 2023.
Additionally, inflows from International Money Transfer Operators (IMTOs) increased by 47% year-on-year, reaching $2.33 billion in H1 2024, compared to $1.58 billion in H1 2023.
This growth is attributed to recent CBN measures allowing eligible IMTOs access to naira liquidity at the official window, aimed at enhancing forex market efficiency and boosting remittance flows through formal channels.
