Naira Gains Massively As CBN Announces New Dollar Inflow into Nigeria
CBN has Reported 61.1% Increase in Diaspora Remittances
The Central Bank of Nigeria (CBN) has announced that diaspora remittances grew significantly, reaching $4.22 billion from January to October 2024, compared to $2.62 billion during the same period in 2023. This represents a 61.1% increase.
CBN Governor Olayemi Cardoso disclosed this during a session with the Senate Committee on Banking, Insurance, and Other Financial Institutions. He credited the rise to improved remittance processes, government policies, and heightened confidence from Nigerians abroad.
The remittance inflows showed consistent growth, rising from $336.61 million in September to $402.38 million in October. Cardoso expressed optimism that inflows would increase further by year-end, citing current trends.
The World Bank has highlighted the importance of remittances, which contribute $20–$25 billion annually, emphasizing their role in reducing poverty and improving living standards in low- and middle-income countries.
Analysts have lauded the CBN’s efforts, noting that the increase in remittances will positively impact the economy, strengthen the naira, and improve foreign exchange liquidity. Nnanna Ezeigbo, a forex broker, described the development as a turning point, attributing it to the CBN’s approval of additional International Money Transfer Operators (IMTOs) over the past year.
The CBN’s projections for doubling remittance inflows seem achievable, given the current trajectory and policies in place.
HOW MUCH IS DOLLAR TO NAIRA TODAY?
As of December 19, 2024, the exchange rate between the US Dollar (USD) and the Nigerian Naira (NGN) varies depending on the source:
- Official Rate: According to XE.com, 1 USD equals approximately 1,553.80 NGN.
- Black Market Rate: NgnRates.com reports an average rate of 1 USD to 1,650.00 NGN.
Please note that exchange rates fluctuate frequently due to market conditions. For the most accurate and current rates, it’s advisable to consult official financial sources or authorized currency exchange services.
Nigerian Banks Lose N42.33 Billion to Fraud in Six Months
Financial institutions in Nigeria have suffered significant losses due to fraudulent activities, with a staggering N42.33 billion reported in the first six months of the year, according to a report by the Financial Institutions Training Centre (FITC).
The FITC fraud report highlighted a sharp increase in fraudulent activities within bank branches, with losses rising by 31% in the second quarter to N42.2 billion, compared to just N133.9 million recorded during the same period in 2023.
This alarming surge underscores the growing sophistication of fraudsters and the vulnerabilities in the banking sector’s systems and processes. Analysts have called for enhanced security measures and stricter oversight to curb the escalating fraud trend.
The FITC report also emphasizes the need for Nigerian banks to invest in advanced fraud detection and prevention technologies, alongside increased staff training and customer awareness campaigns.
The rise in fraud not only affects the profitability of financial institutions but also undermines public trust in the banking sector, posing broader challenges for Nigeria’s financial stability.
