The Central Bank of Nigeria (CBN) has announced a remarkable 63.7% surge in inflows from international money transfer operators (IMTOs) during the first nine months of 2024. According to the CBN’s latest quarterly statistical bulletin, remittance inflows rose from $2.33 billion in 2023 to $3.82 billion in the same period of 2024, underscoring the impact of reforms implemented under Governor Olayemi Cardoso.
A month-by-month analysis of the data showed steady year-on-year increases: January recorded $390.86 million, a 32.4% rise from $295.21 million in 2023. February saw $326.91 million, a 67.4% jump from $195.23 million, while March reached $363.76 million, up 30% from $279.79 million. April saw $466.11 million, marking an 83.3% increase from $254.26 million, with May recording $404.75 million, a 45.3% growth from $278.40 million. June followed with $389.79 million, a 40.2% rise from $278.01 million. In July and August, inflows soared, recording $552.94 million and $585.21 million respectively, representing year-on-year increases of 130% and 115.8%. September capped the period with $336.61 million, up 40.9% from $238.98 million.
The impressive growth in remittance inflows has been linked to policy reforms initiated by the apex bank. Key changes include the removal of caps on exchange rates quoted by IMTOs in January 2024, encouraging competitive pricing and enhancing inflow volumes. The CBN also revised operational requirements for IMTOs, increasing the licensing fee from N500,000 to N10 million and setting a minimum operating capital of $1 million. Restrictions on IMTOs purchasing foreign exchange from the domestic market were also lifted, facilitating smoother operations.
The CBN formed a Collaborative Task Force reporting directly to Governor Cardoso. This task force has driven competition among IMTOs, engaged with the Nigerian diaspora, and improved transparency in foreign exchange transactions. To further enhance the remittance ecosystem, the CBN granted approvals in principle to 14 new IMTOs, expanding the pool of operators and increasing market efficiency.
The surge in remittance inflows has bolstered Nigeria’s external reserves and supported economic stability. Remittances play a critical role in the country’s economy, providing a vital source of foreign exchange and cushioning the effects of economic shocks. Governor Cardoso’s leadership and the CBN’s strategic reforms have positioned Nigeria to harness the full potential of its remittance sector, ensuring sustained growth and financial stability.
