The Central Bank of Nigeria (CBN) has reported a significant increase in foreign exchange inflows through International Money Transfer Operators (IMTOs), reaching $1.07 billion in the first quarter of 2024. This marks a 38.86% rise from the $770.23 million recorded during the same period in the previous year.
This data was disclosed in the CBN’s quarterly statistical bulletin for Q1 2024, which was recently made available on its website. The monthly breakdown of inflows shows $383.04 million in January, a dip to $322.83 million in February, and a rebound to $363.70 million in March.
Compared to the last quarter of 2023, the inflows from IMTOs saw a growth of 10.74%.
In a bid to sustain and increase the supply of foreign exchange in the official market, the CBN has granted approvals-in-principle to 14 new IMTOs. The CBN Governor, Dr. Olayemi Cardoso, stated that these approvals are expected to enhance competition and reduce transaction costs, thereby attracting more remittances through formal channels.
Dr. Cardoso emphasized the importance of remittances, noting, “Over the years, many of you would have read from the World Bank that Nigeria has significant remittances from the diaspora. This represents about six per cent of our GDP. We felt it was crucial to have a strategy to engage this sector, especially the IMTOs, who play a significant role.”
Additionally, the CBN has announced that eligible IMTOs will now have access to the official window to sell foreign exchange. This was outlined in a circular signed by Dr. W.J. Kanya, the acting Director of the Trade and Exchange Department. The measure, which takes immediate effect, aims to provide IMTOs with naira liquidity at the official window, facilitating the timely settlement of diaspora remittances.
The circular states, “The bank has implemented measures that will enable eligible International Money Transfer Operators to access NGN liquidity at the CBN window. These measures are aimed at widening access to local currency liquidity for the settlement of diaspora remittances. Therefore, eligible IMTO operators will be able to access the CBN window directly or through their authorized dealer banks to execute transactions for the sale of foreign exchange in the market.”
This surge in remittance inflows is expected to provide a significant boost to Nigeria’s economy, offering much-needed foreign exchange and supporting household incomes across the country.
