Inflows from international money transfer operators into Nigeria decreased by 11.78 percent during the first half of 2025 when compared to the corresponding period in the previous year, as reported in the latest edition of the Central Bank of Nigeria's Quarterly Statistical Bulletin.
A review of the figures revealed that IMTO revenues amounted to $2.07 billion from January through June 2025, compared to $2.34 billion during the same timeframe in 2024. This marks a decrease of approximately $275.93 million when measured against the previous year, highlighting challenges within a key non-oil foreign currency inflow as central banks rely on transfers to maintain financial system stability.
Each month's data observed by our reporter revealed an inconsistent decrease throughout the time frame, with just one month showing an increase. In January 2025, IMTO inflows fell to $281.97 million compared to $390.86 million in January 2024, representing a drop of 27.86 percent.
In February, revenue also declined, dropping by 11.65% to $288.82 million from $326.91 million during the same period last year. The negative pattern persisted into March, as incoming funds decreased to $317.60 million versus $363.76 million in March 2024, marking a reduction of 12.69%.
Nevertheless, April broke the pattern. Flows via IMTOs increased significantly to $597.44 million in April 2025 compared to $466.11 million in April 2024, reflecting a 28.18 percent annual rise. This marked the best month within the six-month span and the sole instance of positive expansion.
The recovery was short-lived. In May 2025, funds flowed back down to $288.17 million from $404.75 million seen during the same period in the prior year, representing a decrease of 28.8 percent. June also showed a fall of 25.02 percent, as earnings dropped to $292.25 million compared to $389.79 million in June 2024.
The surge in April contributed to reducing the extent of the six-month decline but did not fully counteract the lower inflows during the remaining five months. International money transfers sent by Nigerians living abroad remain a crucial component of the nation's foreign earnings.
Remittances contribute to family spending, saving, investing, and providing foreign currency. Their significance has grown in recent times as the economy aimed to shift from unstable oil revenues.
Changes in the foreign exchange market, worldwide economic situations, and local buying capacity could all be influencing how people send money abroad. Although the report didn’t explain why the decrease happened, the trend indicates that incoming funds continued to be affected by both homegrown and global economic challenges.
A decline in IMTO revenues occurs even as broader policy changes seek to stabilize the foreign currency market and restore trust. In January 2024, the central bank lifted the limit on exchange rates set by IMTOs, which had earlier restricted them to within ±2.5 percent of the prior day's closing rate.
In addition, the CBN raised the IMTO license application charge from N500,000 in 2014 to N10 million in the revised regulations, marking an almost 1,900 percent rise over a decade. Furthermore, a minimum operational capital threshold of $1 million was established for both international and domestic IMTOs.
Although IMTOs were originally prohibited from buying foreign currency within the local market, new guidelines suggest that this limitation has now been removed, enabling them to operate on the formal exchange market.
The Central Bank of Nigeria formed a Joint Task Force that reports directly to CBN Governor Olayemi Cardoso, with the objective of doubling money transfer flows by boosting rivalry, connecting with overseas community groups, and enhancing clarity in foreign exchange dealings.
Additionally, the Central Bank of Nigeria has recently issued 14 new Approval-in-Principle licenses to Investment Management and Trading Organizations, according to Mrs. Hakama Sidi Ali, the Bank's Acting Director of Corporate Communications. These changes have simplified regulatory processes, brought in more IMTOs, and improved efforts to boost the availability of foreign currency.
Nevertheless, although these measures probably played a role in the substantial rise in money transfer inflows during 2024, the upward trend has not continued into 2025. Despite the CBN consistently highlighting its dedication to drawing in foreign exchange from sources other than oil, recent data show that the flow of remittances continues to be inconsistent.
Supplied by SyndiGate Media Inc. ( Syndigate.info ).
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