Direct foreign exchange remittances to Nigeria experienced a decline of $10 million, or 0.84%, year-on-year, totaling $1.18 billion in the first seven months of 2024, compared to $1.19 billion during the same period in 2023.
This information is derived from the Central Bank of Nigeria's "International Payment Statistics," which indicates that May 2024 recorded the highest remittance inflow at $365.4 million.
The data reveals significant month-on-month fluctuations in remittance transactions throughout this period.
In January 2024, remittances were reported at $138.5 million but fell dramatically by 71.7% to $39.14 million in February.
A recovery was noted in March, with remittances increasing by 168% to reach $104.9 million. The upward trend continued into April, where remittances grew by 84.2% to $193.3 million, culminating in the peak of $365.4 million in May.
However, this positive trajectory was not sustained, as June saw a decline of 26% to $270.5 million, followed by a steep drop of 73.2% to $72.3 million in July.
The World Bank's latest "Migration and Development Brief" highlights a broader trend affecting low- and middle-income countries (LMICs), noting that remittance flows slowed between 2022 and 2023, totaling an estimated $656 billion—an increase of just 0.77% compared to an 8.3% growth from 2021 to 2022.
Looking ahead, the World Bank projects a recovery in remittance growth rates for LMICs, forecasting increases of 2.3% in 2024 and 2.8% in 2025, potentially reaching $690 billion by the latter year.
