FX inflows through money transfer operators hit $4.76bn – CBN
Money naira cash transfer
FX inflows through money transfer operators hit $4.76bn – CBN
Foreign exchange inflows through International Money Transfer Operators rose to $4.76bn in 2024, a 44.49 per cent increase from $3.30bn in 2023. This was according to the Central Bank of Nigeria’s latest quarterly statistical bulletin.
The year started strong with January inflows rising 32.5 per cent year-on-year to $390.86m from $295.21m in January 2023, while February inflows surged 67.3 per cent to $326.91m compared to $195.23m the previous year.
March recorded $363.76m, up 30 per cent from $279.79m in 2023, and April saw the highest first-half growth with an 83.3 per cent rise to $466.11m from $254.26m a year earlier.
May inflows increased 45.3 per cent to $404.75m, June remained strong with $389.79m, up 40.2 per cent, while July and August were standout months, posting $552.94m and $585.21m respectively, up 130 per cent and 116 per cent year-on-year.
These two months of July and August accounted for nearly 25 per cent of total inflows for the year.
The final four months showed mixed trends as September inflows rose 40.8 per cent to $336.61m, October increased 29.1 per cent to $378.85m, November declined by 22.1 per cent to $252.28m, and December rebounded 9.1 per cent to $316.59m.
The rise in IMTO inflows is linked to reforms introduced by the CBN under Governor Yemi Cardoso since his appointment in September 2023.
In January 2024, the central bank removed the cap on exchange rates quoted by IMTOs, which had previously limited rates to within ±2.5 per cent of the previous day’s closing rate.
The CBN also increased the IMTO licence application fee from N500,000 in 2014 to N10m in the updated guidelines, representing a nearly 1,900 per cent increase over 10 years. Also, a minimum operating capital requirement of $1m was set for both foreign and local IMTOs.
While IMTOs were initially barred from purchasing foreign exchange from the domestic market, recent circulars indicate that this restriction has been lifted, allowing them to trade on the official market.
The CBN established a Collaborative Task Force reporting directly to Governor Cardoso, aiming to double remittance inflows through increased competition, diaspora engagement, and improved transparency in FX transactions.
Also, the CBN recently granted 14 new Approval-in-Principle licences to IMTOs, as confirmed by the Bank’s Acting Director of Corporate Communications, Mrs Hakama Sidi Ali.
The reforms have streamlined regulatory procedures, onboarded more IMTOs, and enhanced measures to increase the supply of foreign currencies. These steps have likely contributed to the significant growth in remittance inflows, strengthening Nigeria’s foreign exchange market in 2024.
