The Central Bank of Nigeria announced that its recent move to license additional International Money Transfer Operators has significantly boosted remittance inflows into the country, adding that Nigeria recorded $585 million in remittances for August 2024.
This initiative is part of the CBN’s efforts to enhance the efficiency and accessibility of money transfers, contributing to the overall economic stability.
The CBN Governor, Yemi Cardoso, made this disclosure during a press briefing at the end of Tuesday’s 297th Monetary Policy Committee meeting in Abuja on Tuesday.
IMTOs are organizations authorized to provide cross-border fund transfer services, enabling individuals and entities abroad to send money to recipients in Nigeria.
In response to a question regarding the $553 million remittance recorded in July, which marked an all-time high for monthly inflows, the CBN Governor stated “As of August, that figure, from what I’m told is $585 million. Now that is a big deal because it is over 130% of what was recorded for the corresponding period of last year.”
Cardoso noted that the increase in remittance inflows was due to the Central Bank’s efforts, including the issuance of new IMTO licenses to facilitate money transfers to Nigeria.
He highlighted that the CBN had liberalized the IMTO licensing process and encouraged more operators in the sector to establish accounts, further enhancing the ease of sending money to the country.
According to him, the bank is now engaging with IMTOs regularly to ensure that their operations begin to yield positive results.
“I want to just say to you that this (the increase in remittance) didn’t drop from the ceiling; It was a deliberate, calculated effort.
“We recognized in the central bank that certain things were not happening and that there was a need for the central bank itself to see what it could do with respect to encouraging inflows into the system. And I’m happy to say that it has paid off,” he said.
The CBN Governor stated that the bank will not rest on its laurels and will continue to encourage IMTOs to develop innovative products.
Cardoso expressed confidence that if the current momentum is maintained, remittance inflows to Nigeria will keep increasing.
“I had made a commitment, and I think this was probably in March this year, and I said at the time when I decided to engage this, that within a year I would double that (remittance).
“We set up a committee. I head it, and I drive it personally. I am personally invested in that, and I am personally driving it, and I know that we will get the results that we need,” he said.
The apex bank in a bid to boost remittance inflows granted approval in principle (AIP) to 14 new IMTOs in May this year.
CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, had stated that the new licenses aim to enhance the sustained supply of foreign exchange in the official market.
She noted that this approval would promote greater competition and innovation among IMTOs, ultimately lowering remittance transaction costs and boosting financial inclusion.
