Nigerian funding from the Nigerians abroad jumped in 2024, while entries through international money transfer operators (IMTOS) reached $ 4.76 billion, which increased an increase of 44.5% compared to the $ 3.30 billion received in 2023.
The figures, contained in the latest quarterly statistical bulletin of the Central Bank of Nigeria (CBN), underline a dramatic rebound in the sending of the diaspora funds following a round of liberal reforms defended by the governor of the CBN, Olayemi Cardoso.
During the year, the foreign currencies returned home by Nigerians through approved money transfer channels have become critical support on the FX market in difficulty of the country, helping to amortize families, SMEs and the wider economy of volatility and persistent liquidity constraints.
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Starting strong, record of peaks in the middle of the year
The year started with a solid momentum. In January 2024, Imto’s entries increased to $ 390.86 million, or 32.5%, compared to 295.21 million dollars the same month of 2023. The upward trend has increased further in February, while funding of funds reached $ 326.91 million, which represents an increase of 67.3% compared to 195.23 million year earlier.
March entrances increased by 30% in annual shift to 363.76 million dollars, and in April, the market was leaping to $ 466.11 million, an increase of 83.3% compared to the $ 254.26 million posted in April 2023. This April figure represented the higher annual jump in the first half of the year.
In May, Imtos treated $ 404.75 million in funding, up 45.3% compared to the previous year, while June maintained a similar pace with entries totaling $ 389.79 million, an increase of 40.2% from one year on the other.
The most dramatic entries occurred in July and August. July saw Imto entries go up to $ 552.94 million, more than 240.35 million dollars recorded a year earlier. This 130% increase was followed by another peak in August, with $ 585.21 million, or 116%, against 271.24 million dollars in August 2023. Together, the two months represented almost a quarter of the total entries of the year, stressing their central role in foreign liquidity.
Fluctuations in the last months
The last quarter of 2024 presented a more mixed image. In September, the entries reached $ 336.61 million, an increase of 40.8% in annual sliding. October figures increased modestly to 378.85 million dollars, which represents a leap of 29.1% compared to the previous year.
November, however, interrupted the momentum because the entries dropped from 22.1% to $ 252.28 million, compared to $ 324.20 million a year earlier. December brought a partial rebound, with 316.59 million dollars recorded, but also 9.1% lower than 348.33 million dollars declared in December 2023.
The monthly fluctuations towards the end of the year seemed to reflect broader economic uncertainties, seasonal changes and possibly more strict global liquidity conditions having an impact on the behavior of funds.
Cardoso game changer reforms
The increase in entries can be directly attributed to daring reforms introduced by Governor Cardoso, who took the reins of the CBN in September 2023. Determined to reintegrate confidence in the Nigeria exchange market, the Apex bank has not waste time to launch policies to liberalize the remit space.
In January 2024, the CBN abolished the ceiling of ± 2.5% on the exchange rates mentioned by Imtos, allowing them to line up with market rates. This same month, the bank published revised directives for ITTO operations, including a spectacular increase of 1,900% of license demand fees from 500,000 N to 10 million Nairas. The guidelines also set a minimum operational capital of $ 1 million (or its Naira equivalent) for foreign and national immo.
Initially, ITTOs were prevented from buying FX on the domestic market. However, this restriction seems to have been reversed after the industry consultations and a new circular, allowing operators to access the official window under more strict supervision.
The most notable is perhaps the CBN’s decision to establish a collaborative working group with Imtos, with a clear mandate to double the payment entries in Nigeria. The team, which comes directly from the governor, was responsible for expanding awareness of the diaspora, improving the efficiency of integration and increasing competition between Imto.
Speaking on the strategy of the Apex bank, the acting director of corporate communications, Hakama Sidi Ali, revealed that 14 new approvals in principle (AIP) had recently been granted to potential immto – a signaling of a more open and more competitive payment market.
The reforms also emphasized compliance, transparency and efficiency. According to CBN Insiders, the regulator has actively integrated more immto while rationalizing approval processes for a faster license.
The $ 4.76 billion in IMTO entries helped stabilize the Naira to several critical points in 2024, offering an essential supply on the official FX market. Analysts claim that this has also helped to reduce dependence on speculative demand on the parallel market by offering better incentives for pricing and restoring confidence among conductors.
What to watch in 2025
Analysts take care to see if the CBN can maintain the momentum in 2025. Many will depend on the global economic conditions, including interest rates in the United States and Europe, which influence the transfer of diaspora. Another factor will be the speed with which the CBN can approach the remaining ineffectiveness on the official market and maintain the stable in Naira.
