Forex Inflows from IMTOs Rise by 44.5%

CBN Headquarters

Forex Inflows from IMTOs Rise by 44.5%

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The value of foreign exchange inflows to the economy through the International Money Transfer Operators (IMTOs) rose sharply in 12 months to $4.76 billion, the Central Bank of Nigeria (CBN) quarterly statistical bulletin has shown.

The report, which covered inflows in 2024, represents a significant 44.5 per cent increase from the $3.30 billion recorded in 2023.

The IMTO inflows continue to be a vital source of foreign currency for Nigeria, supporting families, businesses, and the broader economy amid ongoing FX market challenges.

The year began with a strong performance in January 2024 as inflows surged 32.5 per cent year-on-year to $390.86 million, compared to $295.21 million in January 2023.

This early momentum was maintained in February, with inflows increasing by 67.3 per cent, rising to $326.91 million from $195.23 million the previous year.

March continued the positive trend, with IMTO inflows hitting $363.76 million in 2024, up 30 per cent from $279.79 million in March 2023.

April saw a leap, with inflows reaching $466.11 million, an 83.3 per cent increase from April 2023’s $254.26 million, marking the highest year-on-year percentage growth in the first half of the year.

May recorded inflows of $404.75 million in 2024, a 45.3 per cent rise compared to $278.54 million the year before.

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June was a relatively flat month-on-month but still strong year-on-year, with inflows at $389.79 million, up 40.2 per cent from $278.04 million in June 2023.

July and August were the standout months for IMTO inflows, posting the highest volumes of the year.

July 2024 inflows jumped to $552.94 million, more than double the $240.35 million recorded in July 2023, representing a 130% year-on-year increase.

August maintained this peak momentum with inflows rising to $585.21 million, a 116% increase from $271.24 million in August 2023.

These two months alone accounted for nearly a quarter of the total inflows for the entire year, highlighting their critical role in Nigeria’s FX ecosystem.

The final four months of 2024 showed a mixed pattern of inflows, reflecting broader economic uncertainties and seasonal effects.

September recorded $336.61 million in IMTO inflows, up 40.8 per cent from $238.98 million in the same month of 2023.

October’s inflows rose modestly to $378.85 million, a 29.1 per cent increase year-on-year. However, November saw a sharp decline, with inflows dropping by 22.1 per cent to $252.28 million from $324.20 million in November 2023.

December ended the year on a more positive note, with inflows rebounding to $316.59 million, a 9.1 per cent increase compared to $348.33 million in December 2023.

The surge in IMTO inflows is closely tied to the reforms introduced by the CBN under Governor Cardoso since his assumption of office in September 2023.