The Central Bank of Nigeria has announced a remarkable 63.7% surge in international money transfer operator inflows during the first three quarters of 2024.
According to the latest quarterly statistical report from the apex bank, remittances increased from $2.33 billion in the same period of 2023 to $3.82 billion this year.
This impressive growth is largely attributed to a series of reforms initiated under the leadership of Governor Olayemi Cardoso, who took office in September 2023.
A year-on-year review of the data shows a steady rise in monthly remittance inflows throughout 2024.
In January, the inflows rose by 32.4%, reaching $390.86 million compared to $295.21 million in 2023. February saw a significant increase of 67.4%, with inflows climbing to $326.91 million from $195.23 million the previous year. March also recorded a 30% boost, with inflows reaching $363.76 million, up from $279.79 million in 2023.
The upward trajectory continued in April, which saw an 83.3% increase, bringing inflows to $466.11 million from $254.26 million in 2023. In May, the inflows grew by 45.3% to $404.75 million, while June experienced a 40.2% rise, totaling $389.79 million.
The most significant growth occurred in July and August, with inflows more than doubling year-on-year.
In July, inflows surged by 130%, reaching $552.94 million, compared to $240.35 million in 2023, while August saw a 115.8% increase, peaking at $585.21 million from $271.24 million in the previous year.
September concluded the period with $336.61 million in inflows, marking a 40.9% increase from $238.98 million in September 2023.
This data underscores the success of the CBN’s initiatives in enhancing remittance inflows, which play a vital role in strengthening Nigeria’s external reserves and contributing to the nation’s economic stability.
In January 2024, the CBN issued a circular removing the cap on exchange rates quoted by IMTOs, which were previously restricted to a range of -2.5% to +2.5% around the previous day’s closing rate in the Nigerian Foreign Exchange Market.
Later that month, the bank released updated guidelines for IMTO operations, implementing substantial changes to licensing and operational requirements. The application fee for an IMTO licence skyrocketed from N500,000 in 2014 to N10 million in 2024, reflecting an astonishing 1,900% increase over the last decade.
Additionally, a new minimum operating capital requirement of $1 million was established for both local and foreign IMTOs.
IMTOs were initially prohibited from purchasing foreign exchange from the domestic market to fulfill their obligations, though a subsequent circular lifted this restriction, allowing them to trade on the official foreign exchange market.
The CBN further established a Collaborative Task Force with IMTOs, tasked with doubling remittance inflows into the country.
Reporting directly to Governor Cardoso, the task force has fostered competition among IMTOs, engaged with the Nigerian diaspora, and increased transparency in foreign exchange transactions.
As part of its ongoing efforts to improve the remittance ecosystem, the CBN granted 14 new approvals in principle to IMTOs, streamlined operational processes, onboarded more IMTOs, and implemented measures aimed at increasing the supply of foreign currency.
