IMTO inflows surge 63.7% in 2024 amid CBN reforms
The Central Bank of Nigeria has revealed a 63.7% per cent increase inflows from international money transfer operators for the first nine months of 2024.
According to the latest quarterly statistical bulletin, remittances rose from $2.33 billion during the same period in 2023 to $3.82 billion in 2024.
This surge in remittance inflows is largely attributed to a series of targeted reforms under the leadership of Governor Olayemi Cardoso, who took office in September 2023.
A year-on-year analysis of the data highlights consistent increases in monthly remittance inflows. In January 2024, inflows grew by 32.4%, from $295.21 million in 2023 to $390.86 million. This upward trajectory continued in February, with a 67.4% increase to $326.91 million, followed by a 30% rise in March, which saw inflows reach $363.76 million.
April recorded one of the most substantial increases, with inflows rising by 83.3% to $466.11 million, while May and June saw steady growth of 45.3% and 40.2%, respectively. July and August witnessed explosive growth, with more than doubling inflows than the previous year. July’s inflows reached $552.94 million, up 130% from $240.35 million in 2023, and August peaked at $585.21 million, marking a 115.8% increase. September ended the period with inflows of $336.61 million, a 40.9% rise from the previous year.
Month-on-month data for 2024 also reflects a generally positive trend, though with some fluctuations. After a strong start in January, February saw a dip of 16.4%. However, March rebounded with an 11.3% per cent, and April continued the positive momentum, rising by 28.1%. May saw a slight decline of 8.3%, but June recovered by 7.8%. July witnessed a sharp rise of 41.8%, with August continuing the trend at a 5.8% increase. However, September recorded a 42.5% decline compared to August’s peak.
The surge in IMTO inflows is closely tied to key reforms implemented by the CBN under Governor Cardoso’s leadership. In January 2024, the CBN lifted the previous cap on exchange rates for IMTOs, allowing greater flexibility. Furthermore, revised guidelines for IMTO operations increased the application fee for an IMTO licence from N500,000 in 2014 to N10 million, reflecting a nearly 1,900% increase over the past decade.
The CBN also introduced a minimum operating capital requirement of $1 million for foreign entities and an equivalent amount for local IMTOs. Initially, IMTOs were banned from purchasing foreign exchange from the domestic market, but this restriction was later lifted, allowing them to trade on the official market.
Additionally, the CBN has worked closely with IMTOs through a Collaborative Task Force aimed at doubling remittance inflows into the country. The task force, which reports directly to Governor Cardoso, has helped improve competition among IMTOs, engage with the Nigerian diaspora, and increase transparency in foreign exchange transactions.
The CBN also granted approval-in-principle to 14 new IMTOs, further strengthening the remittance ecosystem.
This increase in remittance inflows is crucial for Nigeria’s economy, providing a significant source of foreign exchange and bolstering household income. The reforms introduced by the CBN have proven effective, highlighting the importance of a streamlined and competitive remittance market in supporting economic growth.
