Nigeria’s foreign exchange Inflows soar to $4.76 billion in 2024

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The Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin reveals a remarkable 44.49% increase in foreign exchange inflows through International Money Transfer Operators (IMTOs), reaching $4.76 billion in 2024. This growth is a testament to the CBN’s efforts to strengthen the country’s foreign exchange market.

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The year started strong, with January inflows rising 32.5% year-on-year to $390.86 million. February inflows surged 67.3% to $326.91 million, while March recorded $363.76 million, up 30% from $279.79 million in 2023. July and August were standout months, posting $552.94 million and $585.21 million, respectively, with year-on-year increases of 130% and 116%.

The CBN’s reforms, including the removal of the cap on exchange rates quoted by IMTOs and increased license application fees, have likely contributed to the growth. “The removal of the cap on exchange rates quoted by IMTOs has given operators more flexibility and increased inflows,” reflecting the CBN’s commitment to improving the foreign exchange landscape

The bank has also established a Collaborative Task Force to double remittance inflows and granted 14 new approval-in-principle licenses to IMTOs. “These reforms have streamlined regulatory procedures and enhanced measures to increase the supply of foreign currencies,” says Mrs. Hakama Sidi Ali, CBN’s Acting Director of Corporate Communications.

The final four months of the year showed mixed trends, with September inflows rising 40.8% to $336.61 million, October increasing 29.1% to $378.85 million, November declining by 22.1% to $252.28 million, and December rebounding 9.1% to $316.59 million.

With 14 new Approval-in-principle licenses granted to IMTOs, the CBN is poised to further boost remittance inflows. As the central bank continues to drive growth, Nigeria’s foreign exchange market is expected to remain strong. The CBN’s efforts to increase competition, engage the diaspora, and improve transparency in foreign exchange transactions have paid off, with IMTO inflows reaching a record high

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