Foreign exchange inflows into Nigeria through International Money Transfer Operators (IMTOs) surged by 44.49% to reach $4.76 billion in 2024, marking a significant recovery in remittance activity and foreign currency supply amid continued economic reforms by the Central Bank of Nigeria (CBN).
This development, disclosed in the CBN’s latest Quarterly Statistical Bulletin, reflects a substantial increase from $3.30 billion recorded in 2023, highlighting the impact of targeted policy interventions aimed at improving Nigeria’s FX liquidity and stabilizing the naira.
The report shows a consistent upward trend in monthly inflows throughout 2024, particularly in the first half of the year. January 2024 started the year strong with inflows rising 32.5% year-on-year to $390.86 million, while February recorded an impressive 67.3% jump to $326.91 million.
March and April sustained the momentum, posting inflows of $363.76 million and $466.11 million, respectively. Notably, April witnessed the highest first-half surge of 83.3% year-on-year, emphasizing the deepening confidence in Nigeria’s remittance system.
The upward trajectory continued into May ($404.75 million) and June ($389.79 million) with growth rates of 45.3% and 40.2%, respectively. However, July and August emerged as the strongest months, recording $552.94 million and $585.21 million, up 130% and 116% year-on-year—together contributing nearly 25% of the total annual inflow.
The trend moderated in the final quarter of the year with mixed performance. September saw a 40.8% rise to $336.61 million, October grew by 29.1% to $378.85 million, while November declined by 22.1% to $252.28 million. December capped the year with a rebound of 9.1% to $316.59 million.
The impressive growth in FX inflows has been widely attributed to a series of reforms spearheaded by CBN Governor Yemi Cardoso, appointed in September 2023, who has prioritized remittance optimization as a key tool to stabilize Nigeria’s foreign exchange market.
Key among the reforms was the removal of the exchange rate cap for IMTOs in January 2024, which previously pegged their rates within ±2.5% of the preceding day’s closing rate. This liberalization allowed for more competitive pricing and aligned official remittance channels more closely with market realities.
Additionally, the CBN reviewed its licensing framework for IMTOs, increasing the application fee from N500,000 to N10 million and setting a minimum operating capital requirement of $1 million for both foreign and local operators. This move aimed to enhance credibility and ensure that only well-capitalized operators entered the market.
In another pivotal shift, the CBN lifted a long-standing ban on IMTOs purchasing forex from the domestic market, allowing them to participate directly in the official FX window, further expanding supply.
To deepen structural changes, the apex bank established a Collaborative Task Force reporting directly to Governor Cardoso, tasked with doubling remittance flows through enhanced competition, strategic diaspora engagement, and greater transparency.
As part of this reform push, the CBN granted 14 new “Approval-in-Principle” licences to IMTOs in 2024, a development confirmed by the Bank’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali.
The 44.5% jump in remittances comes at a critical time as Nigeria battles currency instability, dwindling external reserves, and sluggish investor confidence. Diaspora inflows, being a stable and non-debt source of FX, are playing an increasingly vital role in supporting the naira, narrowing the official-parallel market gap, and easing pressure on CBN reserves.
According to economists, the surge in remittances enhances balance of payments stability, improves household consumption, and supports poverty reduction, especially for families dependent on funds sent from abroad.
Speaking on the trend, financial analyst Chinedu Eke noted:
“The liberalization of the FX market and the re-engagement with IMTOs has sparked renewed investor and diaspora confidence. It’s a textbook case of how smart reforms can unlock capital flows.”
The sustained rise in IMTO inflows signals the positive outlook for Nigeria’s FX market if reforms are sustained and further deepened. Analysts believe the next frontier includes digital innovation, increased diaspora-targeted instruments, and stronger inter-agency coordination to prevent leakages.
The CBN is expected to release additional guidelines on remittance monitoring and compliance in the second half of 2025 to strengthen transparency and reduce illicit transfers.
With the groundwork laid in 2024, the remittance sector is positioned to play an even more strategic role in Nigeria’s economic recovery, macroeconomic stability, and long-term financial inclusion goals.