The Central Bank of Nigeria has reported a 63.7 per cent increase in international money transfer operator inflows during the first nine months of 2024.
According to the latest quarterly statistical bulletin released by the apex bank, inflows rose from $2.33bn recorded during the same period in 2023 to $3.82bn in 2024.
The significant growth has been attributed to a series of reforms introduced under the leadership of Governor Olayemi Cardoso, who assumed office in September 2023.
A year-on-year analysis of the data revealed consistent increases in monthly remittance inflows throughout the year.
In January, inflows climbed by 32.4 per cent to $390.86m from $295.21m recorded in 2023.
February saw an even larger increase of 67.4 per cent, with inflows rising to $326.91m from $195.23m in the same period the previous year.
March recorded a 30 per cent growth, reaching $363.76m compared to $279.79m in 2023.
The upward trend continued in April with an 83.3 per cent increase in inflows, which rose to $466.11m from $254.26m recorded the year before.
Inflows for May grew by 45.3 per cent to $404.75m, while June saw a 40.2 per cent rise to $389.79m.
The growth became more pronounced in July and August, where inflows more than doubled year-on-year. July recorded $552.94m, representing a 130 per cent rise from $240.35m in 2023, while August peaked at $585.21m, a 115.8 per cent increase from $271.24m.
September capped the nine months with inflows of $336.61m, reflecting a 40.9 per cent rise from $238.98m in September 2023.
The data highlights the effectiveness of the central bank’s policies in boosting remittance inflows, which play a critical role in supporting the country’s external reserves and economic stability.
In January 2024, the CBN issued a circular removing the cap on exchange rates quoted by IMTOs.
Previously, IMTOs were required to quote rates within a permissible range of -2.5 per cent to +2.5 per cent around the previous day’s closing rate of the Nigerian Foreign Exchange Market.
Later that month, the apex bank released revised guidelines for IMTO operations, which introduced significant changes to licensing and operational requirements.
The new guidelines increased the application fee for an IMTO licence from N500,000 in 2014 to N10m in 2024, representing a staggering 1,900 per cent increase over a decade.
The CBN also set a minimum operating capital requirement of $1m for both foreign and local IMTOs.
Also, IMTOs were barred from purchasing foreign exchange from the domestic market to meet their obligations.
However, a subsequent circular appears to have lifted this restriction, allowing IMTOs to trade on the official foreign exchange market.
The CBN also agreed with IMTOs to establish a Collaborative Task Force aimed at doubling remittance inflows into the country.
This task force, which reports directly to Cardoso, has fostered competition among IMTOs, engaged with the Nigerian diaspora, and improved transparency in foreign exchange transactions.
As part of its efforts to strengthen the remittance ecosystem, the CBN also granted 14 new approvals in principle to IMTOs.
The bank’s reforms have also streamlined operational processes, onboarded more IMTOs, and enhanced measures to boost the supply of foreign currency.
