By Milcah Tanimu
Central Bank of Nigeria (CBN) announced a significant increase in remittance inflows, reaching $585 million in August 2024. This surge follows the CBN’s decision to license more International Money Transfer Operators (IMTOs). CBN Governor Yemi Cardoso shared these details during a press briefing after the 297th International Money Transfer Operators (IMTOs) meeting in Abuja.
IMTOs facilitate cross-border fund transfers for individuals and businesses abroad. Cardoso noted that the August figure represents a considerable increase from July’s record of $553 million. It marks a 130% rise compared to the same month last year.
Cardoso emphasized that this growth resulted from intentional efforts by the CBN. The bank liberalized IMTO licensing to attract more operators. He stated, “This increase in remittance didn’t drop from the ceiling; it was a deliberate, calculated effort.”
The CBN has regularly engaged with IMTOs to create a favorable environment for remittance growth. Cardoso expressed confidence that if this trend continues, remittance inflows will rise further.
Looking ahead, the CBN plans to encourage IMTOs to develop innovative products. Cardoso is committed to doubling remittance inflows within a year and personally leads a dedicated committee to achieve this goal.
In May 2024, the CBN approved 14 new IMTOs to enhance the country’s remittance inflows. CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, stated that this move aims to boost the supply of foreign exchange in the official market. It seeks to promote competition among IMTOs, lower transaction costs, and improve financial inclusion while reducing exchange rate volatility.
The surge in remittance inflows in August highlights the effectiveness of recent policy measures aimed at improving liquidity in Nigeria’s foreign exchange market.
