Nigeria’s foreign reserves made a significant improvement as it increased to $36.624 billion on May 15, 2023, from $36.500 billion on May 8.

This is coming at a time when the Naira continues to fall against the Dollar in the exchange markets.

Months ago, Nigeria’s Foreign Exchange Reserves decreased to $36.7 billion in Feb 2023, compared with $37.0 billion in the previous month.

Foreign exchange reserves are assets held in reserve by a monetary authority in foreign currencies. It determines the foreign exchange rate of its currency and maintains confidence in financial markets.

Meanwhile, a stunning $19.8 billion was remitted back home by Nigerians who are working abroad in 2022.

Even though there was an increase of 7% from the prior year, this figure was still below the peak of $24 billion in 2018.

For many households, this sum is a significant source of foreign currency and income. It accounts for around 5% of the nation’s gross domestic product (GDP).

The statistics from the Central Bank of Nigeria balance of payment data for 2022, shows a large increase in remittance inflows and demonstrates the resilience of Nigeria’s diaspora in the face of the COVID-19 pandemic.

The significant inflow of funds from abroad is critical to maintaining the country’s foreign exchange reserves and adding to household income.

The main sources of remittances for Nigeria are the United States, the United Kingdom, Canada, Saudi Arabia, and other countries in Europe, Asia, and Africa.

Although the CBN data does not provide a breakdown by destination, the World Bank however says about 60% of remittances to Nigeria come from the US and the UK.

The two Western countries host the largest Nigerian diaspora communities, estimated at over 5 million people.

In December 2022, President Muhammadu Buhari said Nigerians in the diaspora remitted more than 20 billion dollars in 2021.

The president made the remark at a presidential town hall meeting he held with Nigerians in the diaspora in Washington as he completed his participation at the US-Africa leaders’ summit.

“I am personally proud of you all,” Mr Shehu quoted the president as saying.

i-News Nigeria