Foreign exchange inflows from International Money Transfer Operators surged to an all-time high of $4.76 billion in 2024, representing a 44.49% rise from the $3.30 billion recorded in 2023.
This significant growth was revealed in the Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin and is being attributed largely to a series of policy reforms initiated under the leadership of Governor Yemi Cardoso.
The surge in remittances began early in the year, with January inflows climbing 32.5 percent year-on-year to $390.86 million, up from $295.21 million in the corresponding month of 2023. February witnessed an even more dramatic jump of 67.3 percent, reaching $326.91 million from $195.23 million the previous year.
Momentum remained strong into the second quarter. March inflows rose by 30 percent to $363.76 million, while April posted the highest growth in the first half of the year — an impressive 83.3 percent increase to $466.11 million compared to $254.26 million a year earlier. May and June followed suit, with inflows of $404.75 million and $389.79 million respectively, representing year-on-year increases of 45.3 percent and 40.2 percent.
However, it was the mid-year performance that stood out the most. In July, inflows surged to $552.94 million — a 130 percent rise from the previous year — while August recorded $585.21 million, up 116 percent. Together, these two months alone accounted for nearly a quarter of the year’s total IMTO inflows.
The final four months of 2024 presented a mixed picture. September and October maintained the upward trend with increases of 40.8 percent and 29.1 percent, respectively. However, November saw a sharp dip of 22.1 percent to $252.28 million. December closed the year on a moderate rebound, with inflows climbing 9.1 percent to $316.59 million.
CBN under the leadership of Yemi Cardoso, who assumed office in September 2023, made a landmark decision. It removed the exchange rate cap for IMTOs in January 2024, which had previously restricted rates. This liberalization is believed to have encouraged greater participation from the diaspora and boosted competitiveness among operators.
Additionally, the apex bank revised its licensing guidelines for IMTOs, hiking the application fee from N500,000 — a figure set in 2014 — to N10 million. It also introduced a minimum operating capital requirement of $1 million for both local and foreign IMTOs, a move aimed at strengthening financial sustainability in the sector.
In a further boost to market activity, the CBN lifted the ban preventing IMTOs from purchasing foreign exchange from the domestic market. They are now permitted to participate in the official FX window, enhancing liquidity and facilitating more efficient forex transactions.
To oversee these sweeping changes, the CBN established a Collaborative Task Force that reports directly to the Governor. The task force’s mandate includes increasing transparency, promoting competition, and expanding diaspora engagement — all with the goal of doubling remittance inflows.
In a related development, the CBN granted 14 new Approval-in-Principle licences to IMTOs, as confirmed by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali. This move is part of a broader effort to streamline the regulatory process and increase the number of active players in the remittance ecosystem.
WHAT YOU SHOULD KNOW
IMTO: International Money Transfer Operators.
These Reforms, set by CBN, have not only strengthened Nigeria’s foreign exchange reserves but also reinforced the country’s economic resilience in the face of global volatility.
With the IMTO segment now more robust and investor-friendly, Nigeria appears poised to attract even higher remittance volumes in the years to come.
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