Inflows from International Money Transfer Operators into Nigeria dropped by 11.78 per cent in the first half of 2025 compared with the same period in 2024, according to the Central Bank of Nigeria’s latest Quarterly Statistical Bulletin.

Data analysis showed that IMTO receipts amounted to $2.07 billion between January and June 2025, down from $2.34 billion in the first half of 20
24—a year-on-year decline of roughly $275.93 million.

The drop highlights strain on a key non-oil foreign exchange source at a time when regulators are relying on remittances to bolster market liquidity.

A month-by-month review of the figures obtained by our correspondent showed that the decline in IMTO inflows was uneven, with only one month posting growth. In January 2025, inflows fell sharply to $281.97 million from $390.86 million in January 2024, a 27.86% drop. February also saw weaker receipts, declining 11.65% to $288.82 million from $326.91 million a year earlier.

The downward trend persisted in March, with inflows slipping to $317.60 million from $363.76 million in March 2024, marking a 12.69 per cent decrease.

April was the only month to buck the declining trend. IMTO inflows surged to $597.44 million in April 2025, up from $466.11 million in April 2024, representing a 28.18% year-on-year increase. It was the strongest month in the six-month period and the sole month to record growth.

The rebound, however, was short-lived. In May 2025, inflows dropped to $288.17 million from $404.75 million a year earlier, a 28.80% decline, while June saw a 25.02% fall, with receipts slipping to $292.25 million from $389.79 million in June 2024.

Although the April spike helped soften the overall half-year decline, it was insufficient to offset weaker inflows in the other five months.

International money transfers from Nigerians in the diaspora remain a critical component of the country’s external receipts.

Remittances play a vital role in supporting household consumption, savings, investment, and the supply of foreign exchange. In recent years, they have grown even more significant as Nigeria has sought to diversify its economy away from reliance on volatile oil revenues.

The decline in IMTO receipts comes despite broader policy measures aimed at stabilising the foreign exchange market and restoring confidence. In January 2024, the Central Bank of Nigeria removed the cap on exchange rates for IMTOs, which had previously limited fluctuations to within ±2.5% of the prior day’s closing rate.

The CBN also raised the IMTO licence application fee from N500,000 in 2014 to N10 million under the updated guidelines—a nearly 1,900 per cent increase over 10 years.

In addition, a minimum operating capital of $1 million was established for both foreign and local IMTOs.

While IMTOs were initially prohibited from purchasing foreign exchange from the domestic market, recent circulars indicate that this restriction has been lifted, allowing them to trade on the official market.