Remittance Flows Account for 9.4% of $39.12bn FX Reserves—CBN

By Aduragbemi Omiyale

The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has informed the House of Representatives that Nigeria improved its foreign exchange (FX) reserves to $39.12 billion in October, with remittance flows, driven mainly by foreign capital inflows and receipts from crude oil-related taxes, accounting for 9.4 per cent.

Speaking when he appeared before the lower chamber’s Committee on Banking Regulations headed by Mr Bello El-Rufai, the apex bank chief assured that the nation’s economy was showing signs of recovery.

He noted that the key economic indices showed that the policies of the bank and the government were yielding positive results.

According to him, the service sector will be the key driver to the country’s economy recovery, noting that the amount left in the reserves can take one year import, assuring that there’s nothing to worry about.

Mr Cardoso stated that Nigeria is projected to maintain a more robust 4.3 per cent growth rate, emphasising that the growth will be driven by the services sector, especially as it contributed 58.76 per cent to the gross domestic product (GDP) in the second quarter of 2024, with a robust growth rate of 3.79 per cent.

He informed the lawmakers that as of October 11, 2024, the reserves increased by 12.74 per cent to $39.12 billion from $34.70 billion in June