CBN Reports Surge in IMTO Remittances to $600 Million

The Central Bank of Nigeria (CBN) has announced a remarkable increase in remittances from International Money Transfer Operators (IMTOs), reaching approximately $600 million by the end of September 2024.

This growth is attributed to the CBN’s targeted initiatives aimed at enhancing foreign exchange inflows into the country.

CBN Governor Olayemi Cardoso shared this update during a recent “fireside” event at the Nigeria Economic Summit (NES30), attended by policymakers, economists, and industry stakeholders.

He noted that prior to these initiatives, remittances were around $200 million, highlighting a significant increase driven by the CBN’s focused engagement with international operators.

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“We engaged them extensively, understood their problems, and overhauled operations to make it easier for them to get their licenses and operate,” Cardoso explained, emphasizing the importance of streamlining processes for IMTOs to foster increased remittance volumes.

The Governor also addressed the foundational economic challenges facing Nigeria, stating, “There is no substitute for the fundamentals of the economy.”

He emphasised the necessity of efficient functioning within key economic sectors to achieve sustainable growth.

Cardoso reiterated the significance of building robust institutions and balancing supply and demand to maintain economic stability.

He stated, “Taming inflation is key as it significantly reduces purchasing power and deters investment,” stressing that controlling inflation is essential for stimulating economic growth and enhancing productivity.

Moreover, Cardoso expressed optimism regarding the ongoing recapitalization process within the banking sector.

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“The road towards recapitalization seems to be going in the proper direction,” he remarked, while acknowledging that some institutions are still working to raise necessary capital.

The CBN is enhancing its banking supervision capabilities to help institutions navigate current economic challenges while ensuring stability.

Cardoso emphasized the importance of building the CBN’s capacity to compete globally, stating, “We need to build capacity within the bank, give responsibility, and ensure that the CBN is an institution that can compete with the best central banks worldwide.”