By Abigail Philip David
Nigeria’s net foreign exchange inflow surged by 67.8% to $27.6 billion in the first half of 2024, up from $16.44 billion during the same period in 2023, according to data from the Central Bank of Nigeria (CBN). This significant rise is attributed to a 34.6% year-on-year (YoY) increase in net inflows through autonomous sources, and a remarkable 170% YoY increase in net forex inflows through the CBN.
The CBN’s quarterly Economic Statistics report revealed that total forex inflows into the economy grew by 41.6% YoY to $47.73 billion in H1 2024, compared to $33.7 billion in H1 2023. Gross inflows through autonomous sources jumped by 47.6% YoY, reaching $31.15 billion in H1 2024, up from $21.16 billion the previous year.
On the other hand, forex outflows from the economy increased by 16.3% YoY to $20.12 billion in H1 2024, from $17.3 billion in H1 2023. Notably, outflows through autonomous sources saw a sharp rise of 160.8% YoY, climbing to $5.4 billion in H1 2024 from $2.07 billion in H1 2023.
As a result, net forex inflow through autonomous sources grew by 34.6% YoY, reaching $25.7 billion in H1 2024, compared to $19.09 billion in H1 2023. Meanwhile, inflows through the CBN increased by 31.7% YoY to $16.6 billion in H1 2024, up from $12.6 billion in H1 2023.
Interestingly, forex outflows through the CBN dropped by 15%, falling to $14.7 billion in H1 2024 from $17.29 billion in the previous year. Consequently, net forex inflow through the CBN rose by an impressive 170%, reaching $1.86 billion in H1 2024, a significant recovery from a negative balance of -$2.65 billion in H1 2023.
Additionally, inflows through International Money Transfer Operators (IMTOs) grew by 47% YoY, reaching $2.33 billion in H1 2024, compared to $1.58 billion in H1 2023. The CBN attributed this growth to recent measures allowing IMTOs access to naira liquidity at the official window, aimed at increasing remittance flows and improving the efficiency of the forex market.
