The Central Bank of Nigeria (CBN) has reported a 63.7% spike in international money transfer operator (IMTO) inflows in the first three quarters of last year.
CBN’s latest quarterly bulletin disclosed that inflows increased from $2.33 billion in 2023 to $3.82 billion in 2024.
The surge has been attributed to several reforms introduced by the CBN under Olayemi Cardoso.
Yearly analysis of the data showed a consistent rise in monthly remittance inflows throughout the year.
According to the CBN data, February witnessed the most significant rise in inflows at 67.4%, with inflows rising to $326.91 million from $195,23 million in 2023.
March recorded a 30% rise, hitting $363.76 million relative to $279.79 million in 2023.
Inflows increased 83.3% in April, rising to $466.11 million from $254.26 million in the previous year.
May saw an increase in inflows of 45.3% to $404.75 million, while June recorded a 40.2% spike to $389.79 million.
Punch reports that the growth continued in July and August, doubling yearly inflows.
July saw $552.94 million in inflows, representing a 130% rise from $240.35 million in 2023, while August saw a massive $585.21 million in inflows, representing a 115.8% increase from $271.24 million.
The CBN data showed that September recorded $336.61 million in inflows, a 40.9% rise from $238.98 million in the same period last year.
The data shows the strength of the CBN’s plans to boost diaspora remittances, which are critical in supporting Nigeria’s FX reserves.
Reports explained that in January 2024, CBN removed the cap on exchange rates quoted by IMTOs.
The firms were required to quote rates within a permissible range of -2.5% to +2.5%, based on the Nigerian FX market’s closing rate the previous day.
Also, CBN released another guideline for the operators, introducing significant changes to licensing and operational requirements.
The new guidelines raised the application fee for an IMTO license from 500,000 to N10 million, a 1,900% increase after 10 years.
The apex bank also set a minimum operating capital requirement of $1 million from the local market to meet their needs.
Another circular removed the restriction, allowing operators to trade on the official FX market.
The bank also agreed with the operators to establish a collaborative Task Force to double remittance inflows into Nigeria.
