Nigeria’s net foreign exchange inflow fell by 2.97% in Q3 2024 to $14.46 billion, compared to $14.89 billion in Q2, according to the Central Bank of Nigeria’s (CBN) latest economic report. However, on a year-on-year basis, Q3 saw an impressive 75.91% growth in net inflow, rising from $8.22 billion in Q3 2023.
Highlights of the Report
1. Increased Forex Inflow:
• Total inflow rose 3.01% in Q3 2024 to $22.89 billion from $22.22 billion in Q2.
• Inflows through official channels surged by 39.63% to $11.86 billion, while autonomous sources declined by 19.66% to $11.03 billion.
2. Rising Forex Outflows:
• Outflows increased by 15.18% to $8.43 billion in Q3.
• Outflows through the CBN climbed by 27.91% to $7.31 billion, while autonomous outflows dropped by 30.06% to $1.12 billion.
3. Diaspora Remittances:
• Processed remittances via International Money Transfer Operators reached $4.22 billion from January to October 2024, nearly doubling the $2.62 billion recorded in the same period in 2023.
• Monthly remittances rose from $336 million in September 2024 to $402 million in October 2024.
4. Exchange Rate & Reserves:
• The NAFEX market rate depreciated by 14.62% to ₦1,588.64/$ in Q3, reflecting higher demand pressures.
• External reserves rose to $39.29 billion, covering 8.91 months of imports for goods and services.
Inflation Outlook & Fiscal Strength
• Inflation, currently at 34.60%, is expected to remain high due to energy and transport cost reforms.
• Fiscal reforms are showing positive outcomes, with higher revenue collection and reduced deficits bolstering fiscal stability.
Projected Economic Trends
• Domestic Growth: Improved trade surplus and higher crude oil production, supported by the Dangote and Port Harcourt refineries, are expected to strengthen the economy.
• Global Influence: Easing inflation in advanced economies may boost trade and investment opportunities for Nigeria.
CBN’s Stance
The report highlights that sustained monetary tightening and stable forex policies will help moderate inflation in the coming months.
