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Net Foreign Exchange Inflow to Nigerian Economy drops in Q3

Central Bank of Nigeria (CBN)

The net foreign exchange inflow to the Nigerian economy in the third quarter of the year dropped by 2.97 percent to $14.46 billion from $14.89 billion in the preceding quarter.

The Central Bank of Nigeria disclosed this in its third-quarter economic report published at the weekend.

On a quarter-on-quarter basis, net foreign exchange in the third quarter decreased by 2.97 percent; however, compared to the third quarter of 2023, net foreign inflow had increased by 75.91 percent from $8.22 billion to $14.46 billion.

In the quarter under review, foreign exchange inflow increased by 3.01 percent to $22.89 billion from $22.22 billion in Q2 2024. Inflows through official sources increased in Q3, while those from autonomous sources declined.

The report stated that inflows through the bank rose by 39.63 percent to $11.86 billion from $8.49 billion, while autonomous sources fell by 19.66 percent to $11.03 billion from $13.72 billion in the preceding quarter.

Foreign exchange outflow through the economy rose by 15.18 percent to $8.43 billion, relative to the level in Q2 2024. Outflows through the bank rose by 27.91 percent to $7.31 billion, while those through autonomous sources decreased by 30.06 percent to $1.12 billion.

Consequently, net foreign exchange inflow through the economy decreased by 2.97 percent to $14.46 billion, from $14.89 billion in the preceding quarter.

However, net inflow through autonomous sources fell to $9.90 billion from $12.12 billion in the preceding quarter. A net inflow of $4.55 billion was recorded through the bank compared with a net outflow of $2.78 billion in the preceding quarter.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, revealed at the Senate Committee that diaspora remittances processed through International Money Transfer Operators between January and October 2024 reached $4.22 billion.

He attributed the surge in remittances to the impact of President Bola Ahmed Tinubu’s policies.

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