Dollar inflows through IMTOs in Nigeria rose 65% in 2024 to $3.8 billion, driven by Central Bank reforms that eased forex barriers and boosted remittances.
This growth has strengthened the country’s external reserves.
Nigeria has experienced a remarkable 65% increase in dollar inflows through International Money Transfer Operators (IMTOs) in the first nine months of 2024.
This surge, which brought inflows to $3.8 billion, up from $2.3 billion in the same period of 2023, results primarily from the Central Bank of Nigeria’s (CBN) reforms.
The CEO of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, highlighted this remarkable inflow.
According to him, the CBN’s actions, aimed at liberalising the foreign exchange market and boosting dollar supply, have had a significant impact.
The removal of exchange rate barriers and the expansion of IMTOs have played a key role in attracting more remittances.
Additionally, the CBN’s new measures, such as eliminating exchange rate limits and granting IMTOs access to naira liquidity at its discount window, have created a more favourable environment for remittance companies.
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As a result, IMTOs now account for 24% of Nigeria’s total remittance inflows, a notable increase from the 16% share recorded in 2023.
This shift has also bolstered Nigeria’s external reserves, which grew by nearly $8 billion, reaching $40.9 billion by December 2024, thereby enhancing foreign exchange liquidity.
Moreover, the naira’s float and the reduction of the parallel market premium have made formal channels like IMTOs more attractive.
Consequently, the growth in remittance inflows is expected to continue, promoting greater transparency and efficiency within the foreign exchange market.
Despite the potential risks from global economic shocks, Nigeria’s dominant position in Africa’s remittance market remains secure, thanks to the CBN’s strategic reforms.