IMTO receipts fall to $2.07bn as monthly inflows weaken despite FX reforms
Inflows from International Money Transfer Operators (IMTOs) into Nigeria declined by 11.78 per cent in the first half of 2025, highlighting renewed pressure on one of the country’s key non-oil foreign exchange sources.
Latest figures from the Central Bank of Nigeria (CBN) Quarterly Statistical Bulletin show that IMTO receipts between January and June 2025 stood at $2.07 billion, compared with $2.34 billion recorded during the same period in 2024. The year-on-year decline amounts to roughly $275.93 million, raising concerns as monetary authorities continue to rely on diaspora remittances to support foreign exchange liquidity.
Only April Records Growth
A month-by-month review of the data indicates that inflows weakened in five of the six months, with only April 2025 posting an increase.
- January 2025: IMTO inflows fell to $281.97m, down from $390.86m in January 2024 — a 27.86% decline.
- February: Receipts slipped by 11.65% to $288.82m, compared with $326.91m a year earlier.
- March: Inflows declined to $317.60m from $363.76m, representing a 12.69% drop.
April provided a brief rebound, with IMTO inflows rising sharply to $597.44m from $466.11m in April 2024, a 28.18% increase, and the strongest monthly performance within the period.
However, the recovery was short-lived.
- May 2025: Inflows dropped by 28.80% to $288.17m, down from $404.75m in May 2024.
- June: Receipts fell 25.02% to $292.25m, compared with $389.79m recorded a year earlier.
While April’s surge helped soften the overall half-year decline, it was insufficient to offset weaker inflows across the remaining months.
Remittances Still Critical to FX Supply
Diaspora remittances remain a major source of foreign exchange for Nigeria, supporting household consumption, savings, investment, and overall FX market liquidity. Their importance has grown as the country continues efforts to reduce dependence on volatile oil revenues.
Although the CBN bulletin did not specify reasons for the decline, analysts point to FX market volatility, global economic pressures, and changes in domestic purchasing power as possible factors influencing remittance behaviour.
FX Reforms Yet to Deliver Sustained Gains
The slowdown comes despite several policy reforms aimed at boosting remittance inflows. In January 2024, the CBN removed the cap on exchange rates quoted by IMTOs, which had previously restricted pricing to within ±2.5 per cent of the prior day’s closing rate.
The apex bank also raised the IMTO licence application fee from ₦500,000 to ₦10 million, and introduced a minimum operating capital requirement of $1 million for both local and foreign operators. Additionally, restrictions preventing IMTOs from accessing the official FX market were lifted.
To further strengthen inflows, the CBN set up a Collaborative Task Force reporting directly to Governor Olayemi Cardoso, with a mandate to double remittance receipts through increased competition, diaspora engagement, and improved transparency.
The bank has also issued 14 new Approval-in-Principle licences to IMTOs, a move aimed at expanding participation and boosting FX supply.
However, while these reforms contributed to stronger remittance inflows in 2024, the latest figures suggest the momentum has not carried into 2025, underscoring the uneven nature of Nigeria’s remittance pipeline despite ongoing policy interventions.
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