The Central Bank of Nigeria (CBN) has reported a significant increase in inflows through International Money Transfer Operators (IMTOs), which rose by 47% to $2.33 billion in the first half of 2024, compared to $1.58 billion during the same period last year.
This boost in remittance flows aligns with the CBN’s recent policy initiatives that allow eligible IMTOs access to Naira liquidity at the official foreign exchange window. The move is part of the bank’s broader strategy to enhance the efficiency of the forex market and promote formal channels for remittances.
In a circular issued by Dr. W.J. Kanya, the Acting Director of the Trade and Exchange Department, the CBN stated that these measures would facilitate quicker settlements of diaspora remittances, enabling IMTOs to directly access Naira liquidity or work through their authorized dealer banks for foreign exchange transactions.
Additionally, the latest data indicates that Nigeria’s net foreign exchange inflows have surged by 67.8%, reaching $27.6 billion in H1 2024, compared to $16.44 billion in 2023. This growth is attributed to a 34.6% increase in net inflows from autonomous sources and a remarkable 170% rise in net forex inflows through the CBN.
Overall, total foreign exchange inflows into Nigeria’s economy increased by 41.6%, totaling $47.73 billion in H1 2024, up from $33.7 billion in the same period in 2023. Gross inflows through autonomous sources also experienced a notable growth of 47.6%, reaching $31.15 billion in H1 2024, compared to $21.16 billion in H1 2023.
This encouraging trend reflects the positive impact of the CBN’s initiatives on the remittance landscape in Nigeria, highlighting the vital role of IMTOs in supporting the country’s economy.
