The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to 14 new International Money Transfer Operators (IMTOs) in an effort to boost foreign-currency remittance inflows.
This initiative aims to increase the supply of foreign exchange in the official market by fostering greater competition and innovation among IMTOs, which is expected to lower remittance transaction costs and enhance financial inclusion.
The CBN believes that increasing formal remittance flows, which account for over six percent of Nigeria’s gross domestic product (GDP), will help stabilise the exchange rate by mitigating the impact of external factors like fluctuations in foreign investment and oil export proceeds.
CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, stated that this move will enhance liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEX) and support a market-driven fair value for the naira.
Governor of CBN, Mr. Olayemi Cardoso has expressed a strong commitment to doubling remittance flows into Nigeria within a year. He emphasised the bank’s proactive approach in addressing obstacles to formal remittance channels and highlighted the collaborative efforts with key stakeholders in the remittance industry to ensure a smooth process.
The number of IMTOs in Nigeria has risen from 47 to 62 as part of the CBN’s strategic actions led by Governor Cardoso’s remittance task force. This task force, established after the 2024 World Bank/International Monetary Fund (IMF) Spring Meetings, regularly convenes to implement strategies and monitor their impact on remittance inflows, working closely with the private sector and market operators to improve the remittance ecosystem in Nigeria.
