The Central Bank of Nigeria (CBN) has announced a significant increase in foreign exchange inflow into the country in February 2024. According to Hakama Sidi-Ali, the acting director of corporate communications at the CBN, this surge is attributed to heightened remittance payments by Nigerians abroad and the purchase of naira assets by foreign portfolio investors.
Speaking to journalists in Abuja, Sidi-Ali revealed that overseas remittances surged to US$1.3 billion in February 2024, marking a remarkable increase from the US$300 million received in January.
Moreover, foreign investors have shown strong interest in Nigerian assets, with investments totaling over US$1 billion in February alone. This contributes to a total portfolio flow of at least US$2.3 billion in 2024 thus far, compared to US$3.9 billion for the entire previous year.
Highlighting the continued momentum, Sidi-Ali stated that higher FX inflows persisted into March 2024. Investor interest in short-term sovereign debt has notably increased following adjustments to benchmark interest rates.
Government securities issuances have seen significant oversubscription, with foreign investors accounting for more than 75 percent of bids received in auctions conducted on March 1 and 6, 2024.
Addressing concerns raised in November 2023 by Olayemi Cardoso, the governor of the CBN, regarding remittances, Sidi-Ali assured that investigations are underway.
