Foreign exchange inflows from International Money Transfer Operators (IMTOs) in Nigeria saw a significant increase of 38.86% to $1.07 billion in the first quarter of 2024, compared to $770.23 million during the same period last year.
This data, reported in the Central Bank of Nigeria’s (CBN) quarterly statistical bulletin, reflects inflows of $383.04 million in January, a dip to $322.83 million in February, and a rise to $363.70 million in March.
The CBN has recently approved licenses for 14 new IMTOs to bolster the supply of foreign exchange in the official market. Governor Dr. Olayemi Cardoso highlighted that these approvals are designed to foster competition and reduce transaction costs, which should increase remittances through formal channels.
He emphasized that remittances are crucial for Nigeria, representing about 6% of the nation’s GDP.
In addition, the CBN has introduced measures allowing eligible IMTOs to access the naira liquidity window at the official exchange rate. This move, detailed in a circular by acting Director Dr. W.J. Kanya, aims to facilitate timely settlement of diaspora remittances and broaden access to local currency liquidity.
Source: Punch