Nigeria has witnessed a remarkable 63.7% increase in remittance inflows through International Money Transfer Operators (IMTOs) during the first nine months of 2024, according to the Central Bank of Nigeria (CBN). The inflows surged to $3.82 billion in 2024, compared to $2.33 billion recorded in the same period of 2023, marking a significant milestone for the nation’s economy.
The rise has been largely credited to reforms implemented under the leadership of Governor Olayemi Cardoso, who assumed office in September 2023. The CBN’s latest quarterly bulletin revealed a consistent month-on-month increase in remittance inflows throughout the year, reflecting the effectiveness of its policy adjustments.
Monthly Breakdown of Growth
January 2024 recorded $390.86 million in remittance inflows, a 32.4% increase from $295.21 million in January 2023. February saw a substantial 67.4% rise to $326.91 million, while March posted a 30% growth to $363.76 million. The upward trend gained momentum in April, with inflows soaring by 83.3% to $466.11 million. May and June followed suit, recording growth rates of 45.3% and 40.2%, respectively.
The most dramatic increases were seen in July and August. Inflows more than doubled year-on-year, with July rising 130% to $552.94 million and August reaching $585.21 million, a 115.8% surge. September concluded the period with $336.61 million, marking a 40.9% growth from the previous year.
Several reforms introduced by the CBN have played a pivotal role in this surge. In January 2024, the apex bank removed the cap on exchange rates quoted by IMTOs, giving them more flexibility to operate in the foreign exchange market.
The CBN also revised IMTO guidelines, significantly increasing licensing fees from N500,000 in 2014 to N10 million in 2024 and setting a minimum operating capital of $1 million for both local and foreign operators. A restriction barring IMTOs from purchasing foreign exchange from the domestic market was later lifted, allowing them to participate in the official market.
Additionally, the CBN established a Collaborative Task Force with IMTOs aimed at doubling remittance inflows. This initiative, which reports directly to Governor Cardoso, has promoted competition, strengthened engagement with the Nigerian diaspora, and enhanced transparency in foreign exchange transactions.
The surge in remittance inflows has bolstered Nigeria’s external reserves and contributed to economic stability. By fostering competition and improving market efficiency, the CBN’s policies have ensured a steady flow of foreign exchange, a crucial element for the country’s financial resilience. As the CBN continues to refine its policies, experts anticipate sustained growth in remittance inflows, further strengthening Nigeria’s economic outlook.
