Echotitbits – Nigeria News

Tag: diaspora remittances

  • Naira Strengthens Against Dollar as Market Liquidity Stabilizes

    Naira Strengthens Against Dollar as Market Liquidity Stabilizes

    According to reporting by Vanguard, the Nigerian Naira sustained its positive momentum against the United States dollar during the early trading hours of Thursday, February 5, 2026. The local currency opened at approximately 1,368.56 per dollar at the Nigerian Foreign Exchange Market (NFEM), reflecting a steady appreciation from the 1,388 levels recorded only 24 hours prior. This recovery is largely attributed to the Central Bank of Nigeria’s (CBN) aggressive market-matching strategies and a robust increase in external reserves.

    The Electronic Foreign Exchange Matching System (EFEMS) has been cited as a primary driver for narrowing bid-ask spreads, fostering greater transparency within the official window. In the parallel market, the dollar exchanged between 1,450 and 1,465 across major hubs like Lagos and Abuja. Bureau De Change operators noted that while a premium remains, the gap between official and informal rates has contracted to one of its lowest margins in several months due to steady supply from diaspora remittances.

    The Punch and ThisDay have corroborated this downward trend in exchange volatility. Business analysts at The Punch remarked that “the Naira’s resilience this week suggests a shift from speculative behavior to demand-driven market fundamentals.” Similarly, ThisDay reported that “investor confidence is returning as the CBN stabilizes the liquidity pool,” with one analyst noting that “we are seeing the most stable foreign exchange window since the unification reforms of 2024.”

    Echotitbits take:

    The narrowing gap between the official and parallel market rates is a significant victory for the CBN’s monetary policy. If the current liquidity levels are maintained through Q1 2026, we expect a further reduction in imported inflation, which could lead to a potential softening of interest rates by mid-year. Watch for the next Monetary Policy Committee (MPC) meeting to see if these gains trigger a shift from the current 27% MPR.

    Source: BusinessDay – https://businessday.ng/news/article/naira-maintains-steady-rise-hits-n1358-28-as-reserves-grow/, February 5, 2026

    Photo credit: BusinessDay

  • Diaspora Remittances Hit Record High as Nigeria Simplifies FX Inflows

    Diaspora Remittances Hit Record High as Nigeria Simplifies FX Inflows

    Diaspora remittances into Nigeria reportedly hit a record monthly high in January 2026, driven by FX market reforms that narrowed the gap between official and parallel market rates and encouraged formal channels.

    The CBN’s incentive approach and the licensing of new International Money Transfer Operators (IMTOs) have helped reduce transfer costs, with analysts describing remittances as a key pillar for reserves stability.

    Policy discussions are also shifting toward remittance-backed bonds that would allow diaspora funds to support infrastructure projects, converting consumption inflows into long-term development capital.

    Echotitbits take: For years, billions bypassed the official system. Better FX transparency is restoring diaspora confidence in formal channels. The next step—Diaspora Bonds—could help close Nigeria’s infrastructure funding gap, but only if managed transparently and credibly.
    Source: This Day – https://www.thisdaylive.com/2026/01/17/how-cbn-reforms-are-boosting-nigerias-fx-inflows-balance-of-payments/ 2026-01-27

    Photo Credit: This Day

  • CBN Data Shows Drop in Diaspora Remittance Inflows via IMTOs

    CBN Data Shows Drop in Diaspora Remittance Inflows via IMTOs

    Photo Credit: The Punch
    2025-12-26 06:20:00

    In an update published by *PUNCH*, Central Bank of Nigeria (CBN) data shows inflows through International Money Transfer Operators (IMTOs) declined, underlining how fragile FX supply remains even after reforms aimed at improving official-market pricing.

    The report points to pressures that can affect remittances—global cost-of-living stress, immigration policy shifts in key sending countries, and the growing use of informal channels that bypass official reporting.

    For Nigeria’s FX market, reduced IMTO inflows can tighten liquidity, complicate supply management, and intensify demand pressure—especially for households and SMEs that rely on remittances for consumption and working capital.

    Analysts will likely watch whether the trend persists into subsequent quarters, and whether policy signals further encourage formal remittance routing.

    *Nairametrics* wrote that “inflows fell to $888.39 million in Q1 2025, compared to $1.08 billion” in the same period of 2024, while *Proshare* stated inflows “declined by -6% quarter-on-quarter (QoQ) to US$888m in Q1 2025.”

    Echotitbits take: Remittances are a lifeline—but they’re also a policy barometer. If official inflows keep sliding, Nigeria may need stronger incentives for formal channels (pricing, speed, trust) and tighter scrutiny of leakages to informal pipelines.

    Source: The Punch — Dec 26, 2025 (https://punchng.com/cbn-reports-276m-drop-in-imtos-inflows/)

    Photo credit/source: The Punch
    The Punch 2025-12-26