New IMTO licences push Nigeria’s remittance inflows to $585m – CBN
The Central Bank of Nigeria announced that its recent move to license additional International Money Transfer Operators has significantly increased remittance inflows into the country, with Nigeria recording $585 million in remittances in August 2024.This initiative is part of the CBN's efforts to improve the efficiency and accessibility of money transfers, which helps to maintain overall economic stability.
The CBN Governor, Yemi Cardoso, made the announcement during a press briefing following Tuesday's 297th Monetary Policy Committee meeting in Abuja on Tuesday.
IMTOs are organizations that have been authorized to provide cross-border fund transfer services, allowing individuals and entities from other countries to send money to Nigerian recipients.
In response to a question about the $553 million remittance recorded in July, which set an all-time monthly inflow record, the CBN Governor stated, "As of August, that figure, from what I'm told, is $585 million. That is significant because it is more than 130% higher than what was recorded during the same period last year."
Cardoso stated that the increase in remittance inflows was due to the Central Bank's efforts, such as the issuance of new IMTO licenses to facilitate money transfers to Nigeria.
He noted that the CBN had liberalized the IMTO licensing process and encouraged more operators in the sector to open accounts, making it easier to send money to the country.
According to him, the bank is now engaging with IMTOs on a regular basis to ensure that their operations begin to produce positive results.
"I just want to point out that this (the increase in remittances) did not happen by chance; it was a deliberate, calculated effort.
"We recognized at the central bank that certain things were not happening and that the central bank needed to look into what it could do to encourage inflows into the system. "And I'm pleased to report 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 create innovative products.
Cardoso expressed confidence that if current trends continue, remittance inflows to Nigeria will increase.
"I had made a commitment, which I believe was in March of this year, that within a year I would double that (remittance).
"We formed a committee. I lead it and drive it myself. I am personally invested in that, and I am driving it, and I am confident that we will achieve the desired results," he stated.
In May this year, the apex bank granted approval in principle (AIP) to 14 new IMTOs in an effort to boost remittance inflows.
Hakama Sidi Ali, CBN's Acting Director of Corporate Communications, stated that the new licenses are intended to increase the sustained supply of foreign exchange in the official market.
She stated that this approval would encourage greater competition and innovation among IMTOs, resulting in lower remittance transaction costs and increased financial inclusion.
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