Decline in International Money Transfer Operator Inflows in Nigeria
International money transfer operator (IMTO) inflows into Nigeria have experienced a notable decline in the first half of 2025. According to the Central Bank of Nigeria’s (CBN) latest Quarterly Statistical Bulletin, these inflows fell by 11.78 per cent compared to the same period in 2024. The data reveals that IMTO receipts totalled $2.07 billion between January and June 2025, down from $2.34 billion recorded in the corresponding period of 2024. This represents a decrease of approximately $275.93 million year-on-year.
The decline highlights pressure on an essential non-oil foreign exchange source at a time when monetary authorities are relying on remittances to support market liquidity. A monthly breakdown of the figures indicates that the decline was uneven over the six-month period, with only one month showing growth.
Monthly Analysis of Inflows
In January 2025, IMTO inflows dropped to $281.97 million from $390.86 million in January 2024, marking a 27.86 per cent decline. February receipts also weakened, declining by 11.65 per cent to $288.82 million from $326.91 million a year earlier. The downward trend continued in March, with inflows falling to $317.60 million compared to $363.76 million in March 2024, representing a 12.69 per cent decline.
However, April bucked the trend, as inflows through IMTOs rose sharply to $597.44 million in April 2025 from $466.11 million in April 2024, indicating a 28.18 per cent year-on-year increase. This was the strongest month in the six-month period and the only month to record positive growth.
The rebound did not last. In May 2025, inflows fell back to $288.17 million from $404.75 million recorded in the same month of the previous year, a 28.80 per cent drop. June also posted a decline of 25.02 per cent, with receipts slipping to $292.25 million from $389.79 million in June 2024.
While the April spike helped to moderate the scale of the half-year fall, it was not enough to offset weaker inflows across the other five months. International money transfers from Nigerians in the diaspora form a key component of the country’s external receipts.
Importance of Remittances
Remittances play a crucial role in supporting household consumption, savings, investment, and foreign exchange supply. They have become increasingly important in recent years as the economy seeks to diversify away from volatile oil earnings. Fluctuations in the foreign exchange (FX) market, global economic conditions, and domestic purchasing power may all be influencing remittance behavior. Although the bulletin did not provide specific reasons for the decline, the pattern suggests that inflows remain sensitive to both domestic and international economic headwinds.
Policy Reforms and Regulatory Measures
Despite these challenges, the CBN has implemented several policy reforms aimed at stabilizing the foreign exchange market and rebuilding confidence. In January 2024, the central bank removed the cap on exchange rates quoted by IMTOs, which had previously limited rates to within ±2.5 per cent of the previous day’s closing rate.
The CBN also increased the IMTO licence application fee from N500,000 in 2014 to N10 million in the updated guidelines, representing a nearly 1,900 per cent increase over 10 years. Additionally, a minimum operating capital requirement of $1 million was set for both foreign and local IMTOs.
Initially, IMTOs were barred from purchasing foreign exchange from the domestic market, but recent circulars indicate that this restriction has been lifted, allowing them to trade on the official market.
Collaborative Efforts and Licensing
To further boost remittance inflows, the CBN established a Collaborative Task Force reporting directly to CBN Governor Olayemi Cardoso. This task force aims to double remittance inflows by increasing competition, engaging diaspora communities, and improving transparency in FX transactions.
Additionally, the CBN recently granted 14 new Approval-in-Principle licences to IMTOs, as confirmed by the Bank’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali. These reforms have streamlined regulatory procedures, onboarded more IMTOs, and enhanced measures to increase the supply of foreign currencies.
Challenges and Future Outlook
While these steps likely contributed to significant growth in remittance inflows in 2024, the increase has not been sustained in 2025. Although the CBN has repeatedly emphasized its commitment to attracting non-oil foreign exchange, the latest figures indicate that the remittance pipeline remains uneven.