The Central Bank of Nigeria, CBN, latest External Sector Development Report (ESDR), has revealed that external financial flows into the country has soared with the current transfers amounting to $21.9 billion (N4.38 trillion) in 2014.
The apex bank data showed that workers’ remittances accounted for more than 90 per cent of current transfers.
Remittances are the second largest source of foreign exchange inflows into Nigeria recorded in the balance of payments.
The balance consisted of general government transactions such as the local expenses of embassies and international organizations.
Analysts are of the opinion the $21.9 billion current transfers is a huge success when compared with $80.0 billion for oil and gas exports, $5.3 billion for foreign portfolio investment, $4.7 billion for foreign direct investment and $3.9 billion for non-oil exports.
Analysts at FBN Capital said: “The figures for transfers and investment are unadjusted for outflows, which are modest in the case of transfers but sizeable for portfolio transactions. Current transfers could, to give just three destination points, finance housing construction, seasonal celebrations and/or import demand. For a number of reasons, we cannot be more precise.”
While lamenting the glitch of tracing remittances, the analysts noted that remittance may be received by the beneficiary through a bank, at a bureau de change, at the local office of the money transfer corporation or through independent channels such as a mobile telephone.
