The Central Bank of Nigeria’s (CBN) latest data has revealed a remarkable 63.7% surge in inflows from international money transfer operators (IMTOs) in the first nine months of 2024. IMTO inflows rose to $3.82 billion during the period, a significant leap from the $2.33 billion recorded in 2023.
This dramatic growth is largely credited to key policy reforms implemented under the leadership of Governor Olayemi Cardoso, who assumed office in September 2023.
Year-on-Year Growth
The CBN’s quarterly statistical bulletin highlights consistent year-on-year increases in remittance inflows throughout the year. January 2024 saw a 32.4% rise, with inflows growing to $390.86 million compared to $295.21 million in January 2023. February followed with a 67.4% increase, reaching $326.91 million, while March saw a 30% jump to $363.76 million.
April 2024 posted one of the most significant increases, with inflows rising 83.3% to $466.11 million from $254.26 million in 2023. May saw a 45.3% growth to $404.75 million, and June followed with a 40.2% increase, reaching $389.79 million.
July and August marked record-breaking growth, with inflows exceeding 100% each month. In July, inflows surged to $552.94 million, a sharp rise from $240.35 million the previous year. August peaked at $585.21 million, up 115.8% from $271.24 million in 2023.
September capped the nine-month period with $336.61 million, reflecting a 40.9% increase compared to the $238.98 million recorded in September 2023.
Month-on-Month Trends
A month-by-month analysis of 2024 inflows revealed fluctuations but an overall upward trajectory. January recorded strong inflows of $390.86 million, which dipped by 16.4% in February to $326.91 million. March reversed the decline with an 11.3% increase to $363.76 million, followed by a 28.1% rise in April to $466.11 million.
While May experienced a slight 8.3% drop to $404.75 million, inflows rebounded in June, climbing by 7.8% to $389.79 million. July witnessed a significant 41.8% surge to $552.94 million, and August inflows rose 5.8% to $585.21 million—the highest monthly figure of the year. However, inflows dropped by 42.5% in September, settling at $336.61 million.
Impact of CBN Reforms
The surge in IMTO inflows is closely tied to reforms introduced by the CBN. In January 2024, the apex bank removed the cap on exchange rates quoted by IMTOs, which had previously limited rates within a narrow band. Revised guidelines were also issued, raising the application fee for IMTO licenses from N500,000 to N10 million and setting a minimum operating capital of $1 million for foreign and local IMTOs.
Additionally, IMTOs were initially barred from purchasing foreign exchange in the domestic market, but the ban was later lifted, allowing them to trade on the official market.
To further bolster remittance inflows, the CBN formed a Collaborative Task Force, reporting directly to Governor Cardoso. The task force, in tandem with newly licensed IMTOs, has been instrumental in driving competition, engaging the Nigerian diaspora, and enhancing transparency in foreign exchange transactions.
Economic Implications
The rise in IMTO inflows provides much-needed foreign exchange and boosts household income, which is critical for Nigeria’s economy. The CBN’s reforms have significantly strengthened the remittance ecosystem, positioning it as a key pillar in addressing the country’s economic challenges.
With the ongoing reforms, Nigeria is poised to sustain the upward trend in remittance inflows, offering a much-needed cushion for the economy amid global uncertainties.
