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The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to 14 new International Money Transfer Operators (IMTOs) as part of its strategy to double foreign currency remittances through formal channels.
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This initiative aims to increase the sustained supply of foreign exchange (FX) in the official market by fostering greater competition and innovation among IMTOs, which in turn is expected to lower the cost of remittance transactions and enhance financial inclusion.
The announcement coincides with a recent fluctuation in the naira’s value. Yesterday, the naira strengthened in the official FX window but continued to weaken in the parallel market. At the Nigerian Autonomous Foreign Exchange (NAFEX) window, the naira closed at N1,459.02/$1, gaining N61.38 from the previous day’s close of N1,520.40/$1. Conversely, the parallel market rate closed at N1,540/$1, a loss of N5 from N1,535/$1 the previous day.
Trading volumes saw a significant increase, with daily turnover rising by 124% to $289.14 million yesterday, up from $128.76 million on Monday. The highest spot rate observed was N1,593, while the lowest was N1,401.
CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, highlighted that formal remittance flows—a crucial source of FX inflows—account for over 6% of Nigeria’s Gross Domestic Product (GDP). These flows are vital for mitigating historical volatility in the country’s exchange regime, which is often influenced by external factors such as fluctuations in foreign investment and oil export proceeds.
Sidi Ali emphasized that the introduction of more IMTOs would increase liquidity in the Nigerian Autonomous Foreign Exchange Market (NAFEX) and help establish a market-driven, fair value for the naira.
CBN Governor, Mr. Olayemi Cardoso, stated, “We’ve set ourselves a target to double remittance flows into Nigeria within a year, a goal I firmly believe is within reach. We are committed to removing any bottlenecks hindering flows through formal channels permanently. We have a clear pathway and a sequenced approach to addressing all challenges ahead, working hand in hand with key stakeholders in the remittance industry.”
