1 day Ago By Segun Odunewu
The Central Bank of Nigeria (CBN) has announced a 63.7 per cent increase in international money transfer operator (IMTO) inflows during the first nine months of 2024. According to the CBN’s latest quarterly statistical bulletin, remittance inflows rose to $3.
82 billion, up from $2.33 billion in the same period of 2023. This surge is widely attributed to comprehensive reforms spearheaded by Governor Olayemi Cardoso since his appointment in September 2023.
A detailed analysis of the data reveals consistent year-on-year increases in monthly remittance inflows throughout 2024: January 2024: $390.86 million, a 32.4 per cent increase from $295.
21 million in 2023; February 2024: $326.91 million, a 67.4 per cent jump from $195.
23 million; March 2024: $363.76 million, reflecting a 30 per cent rise from $279.79 million; April 2024: $466.
11 million, the highest annual growth of 83.3 per cent compared to $254.26 million.
Remittances in July and August 2024 skyrocketed by over 100 per cent, with August peaking at $585.21 million, a 115.8 per cent increase from $271.
24 million in 2023. Despite minor monthly fluctuations, the overall trend remains upward, with substantial growth driven by policy changes aimed at liberalizing the foreign exchange market and boosting Diaspora engagement. Governor Cardoso’s tenure has been marked by bold measures to revamp the remittance ecosystem: In January 2024, the CBN eliminated the cap on exchange rates quoted by IMTOs, encouraging competitive pricing and market-driven rates.
The CBN increased the IMTO licensing fee from N500,000 to N10 million and set a minimum operating capital of $1 million. The CBN granted 14 new Approvals-in-Principle (AIPs) for IMTOs, fostering competition and innovation. Additionally, the CBN established a Collaborative Task Force to double remittance inflows.
Reporting directly to Governor Cardoso, this task force focuses on improving transparency, engaging the diaspora, and ensuring seamless foreign exchange transactions. Dr. Adebayo Shonibare, an economist and remittance specialist, attributes the surge to “a combination of regulatory reforms and strategic incentives that have bolstered market confidence.
” Similarly, financial analyst Tolu Okunade notes that “the rise in inflows provides critical support to Nigeria’s foreign exchange reserves and household incomes, cushioning the economy against external shocks.”.
