Remittances from Nigerians abroad surged in 2024, as inflows through International Money Transfer Operators (IMTOs) jumped to $4.76 billion—marking a 44.5% increase over the $3.30 billion received in 2023.
The figures, contained in the Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin, point to a dramatic rebound in diaspora remittances following a raft of liberal reforms championed by CBN Governor Olayemi Cardoso.
Over the course of the year, foreign currency sent home by Nigerians through licensed money transfer channels became critical support to the country’s struggling FX market, helping to cushion families, SMEs, and the broader economy from persistent currency volatility and liquidity constraints.
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Strong Start, Record Mid-Year Peaks
The year began with solid momentum. In January 2024, IMTO inflows climbed to $390.86 million—up 32.5% from $295.21 million in the same month of 2023. The upward trend strengthened further in February, as remittances hit $326.91 million, representing a 67.3% rise compared to the $195.23 million recorded a year earlier.
March inflows rose 30% year-on-year to $363.76 million, and in April, the market witnessed a sharp leap to $466.11 million—an 83.3% increase over the $254.26 million posted in April 2023. That April figure represented the highest year-on-year jump in the first half of the year.
By May, IMTOs processed $404.75 million in remittances, up 45.3% from the previous year, while June maintained a similar pace with inflows totaling $389.79 million, a 40.2% rise year-on-year.
The most dramatic inflows occurred in July and August. July saw IMTO inflows soar to $552.94 million, more than double the $240.35 million recorded a year earlier. That 130% increase was followed by another peak in August, with $585.21 million—up 116% from $271.24 million in August 2023. Together, both months accounted for nearly a quarter of the year’s total inflows, underscoring their central role in foreign exchange liquidity.
Fluctuations in Final Months
The final quarter of 2024 presented a more mixed picture. In September, inflows reached $336.61 million—a 40.8% increase year-on-year. October figures climbed modestly to $378.85 million, representing a 29.1% jump from the previous year.
November, however, broke the momentum, as inflows dropped 22.1% to $252.28 million from $324.20 million a year earlier. December brought a partial rebound, with $316.59 million recorded—though still 9.1% lower than the $348.33 million reported in December 2023.
The monthly fluctuations toward year-end appeared to reflect broader economic uncertainties, seasonal shifts, and possibly tighter global liquidity conditions impacting remittance behavior.
The Game Changer Cardoso’s Reforms
The rise in inflows can be traced directly to bold reforms introduced by Governor Cardoso, who took the reins of the CBN in September 2023. Determined to re-anchor confidence in Nigeria’s foreign exchange market, the apex bank wasted no time rolling out policies to liberalize the remittance space.
In January 2024, the CBN abolished the ±2.5% cap on exchange rates quoted by IMTOs, allowing them to align closer with market rates. That same month, the Bank issued revised guidelines for IMTO operations—including a dramatic 1,900% hike in license application fees from N500,000 to N10 million. The guidelines also set a minimum operational capital of $1 million (or its naira equivalent) for both foreign and domestic IMTOs.
Initially, IMTOs were barred from buying FX in the domestic market. However, that restriction appears to have been reversed following industry consultations and a new circular, allowing operators to access the official window under stricter supervision.
Perhaps most notable is the CBN’s decision to establish a Collaborative Task Force with IMTOs, with a clear mandate to double remittance inflows into Nigeria. The team, which reports directly to the Governor, has been tasked with expanding outreach to the diaspora, improving onboarding efficiency, and boosting competition among IMTOs.
Speaking on the apex bank’s strategy, Acting Director of Corporate Communications, Hakama Sidi Ali, revealed that 14 new Approvals-in-Principle (AIPs) had recently been granted to prospective IMTOs—signaling a more open and competitive remittance market.
The reforms have also emphasized compliance, transparency, and efficiency. According to CBN insiders, the regulator has been actively onboarding more IMTOs while streamlining approval processes for faster licensing.
The $4.76 billion in IMTO inflows helped stabilize the naira at several critical points in 2024, offering much-needed supply in the formal FX market. Analysts say it also helped reduce dependence on speculative demand in the parallel market by offering better pricing incentives and restoring confidence among remitters.
What to Watch in 2025
Analysts are watching to see whether the CBN can sustain the momentum into 2025. Much will depend on global economic conditions, including interest rate trends in the U.S. and Europe, which influence diaspora remittance behavior. Another factor will be how quickly the CBN can address the remaining inefficiencies in the official market and keep the naira stable.