The Central Bank of Nigeria (CBN) has announced a significant 39 per cent increase in inflows through International Money Transfer Operators (IMTOs) for the first quarter of 2024, compared to the same period in 2023.
This surge is a positive development for the nation’s foreign exchange reserves and highlights the growing reliance on remittances from Nigerians abroad.
According to the CBN’s latest report, total inflows through IMTOs reached $5.2 billion in the first quarter of 2024, up from $3.74 billion in the same period last year.
This increase underscores the crucial contributions of the Nigerian diaspora to the economy, providing much-needed foreign currency to support various sectors.
Analysts attribute this rise to several factors, including improved confidence in official channels for remittance transfers, enhanced technological platforms for money transfers, and favorable exchange rates that have encouraged more Nigerians abroad to send money home through formal channels.
“The increase in IMTO inflows is a testament to the resilience and commitment of the Nigerian diaspora,” said Dr. Ibrahim Adamu, an economist at Lagos Business School. “These remittances play a crucial role in supporting households, funding education, healthcare, and investments in small businesses.”
The CBN has been actively promoting the use of IMTOs as part of its broader strategy to stabilize the naira and improve foreign exchange liquidity.
Recent initiatives, including the “Naira 4 Dollar” scheme, which offers incentives for remittances sent through official channels, have contributed to the growth in IMTO inflows by making formal transfer methods more attractive.
The increased inflows have also had a positive impact on the foreign exchange market. With more dollars coming into the country, the CBN has bolstered its reserves, providing a buffer against external shocks and supporting the naira. Higher reserves are expected to help the CBN manage exchange rate stability and inflationary pressures more effectively.