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The Central Bank Of Nigeria (CBN) stated that it has granted Approval-in-Principle (AIP) to 14 new International Money Transfer Operators (IMTOs) to enhance remittances. The approval aims to strengthen the flow of foreign currency into the country through official channels.
The Central Bank Of Nigeria (CBN) stated that it has granted Approval-in-Principle (AIP) to 14 new International Money Transfer Operators (IMTOs) to enhance remittances. The approval aims to strengthen the flow of foreign currency into the country through official channels. Remittances, which involve transferring funds from overseas to families or individuals within the country, form a substantial part of Nigeria’s foreign exchange inflows. They are crucial for maintaining economic stability and fostering growth.
According to a statement by the CBN’s Acting Director of Corporate Communications, Hakama Ali, the approval aims to strengthen the flow of foreign currency into the country through official channels. She emphasised that the addition of these IMTOs will contribute to increasing the availability of foreign exchange in Nigeria’s official market.
This will spur liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEX), augmenting price discovery to enable a market-driven fair value for the naira.
The CBN viewed increasing formal remittance flows—one of the major sources of foreign exchange, accounting for over 6 percent of GDP—as a means of reducing the historical volatility in Nigeria’s exchange rate caused by external factors such as fluctuations in foreign investment and oil export proceeds. The increase in the number of IMTOs is one of the primary actions initiated by the CBN’s remittance task force, as a collaborative unit pulling together specialists to work closely with the private sector and market operators to facilitate the ease of doing business in the remittance ecosystem in Nigeria.
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As of the end of the first quarter of 2024, the CBN recorded a total direct foreign exchange (FX) remittances of USD 282.61 million representing a USD 18.96 million decrease when compared to the USD 301.57 million diaspora remittances recorded in Q1 2023.
