Nigeria recorded an 11.78% decline in remittance inflows through International Money Transfer Operators (IMTOs) in the first half of 2025 compared with the same period of 2024, according to figures from the Central Bank of Nigeria’s latest quarterly statistical bulletin.
Total IMTO inflows fell to $2.07 billion between January and June 2025, down from $2.34 billion in the corresponding period of 2024. This represents a shortfall of $275.93 million year-on-year.
Remittances are a key source of foreign-exchange liquidity for Nigeria, supporting household consumption and contributing to the country’s balance-of-payments position.
The latest numbers suggest continued pressure on formal inflows despite foreign-exchange market reforms and engagement with IMTOs to boost receipts.
What does the data say
A breakdown of the data shows that the first quarter of 2025 accounted for the sharpest fall. IMTO inflows for January to March 2025 stood at $888.39 million, compared with $1.08 billion in the same period of 2024, indicating a year-on-year drop of about $193.14 million or 17.9%.
January 2025 inflows declined to $281.97 million from $390.86 million a year earlier, a fall of roughly 27.8%. February receipts dropped to $288.82 million from $326.91 million (-11.6%), while March inflows dipped to $317.60 million from $363.76 million (-12.7%).
However, the trend moderated in the second quarter of the year due largely to a sharp increase in April. Total IMTO inflows for April to June 2025 amounted to $1.18 billion, only about 6.6% lower than the $1.26 billion recorded in Q2 2024.
April 2025 stood out with $597.44 million in inflows, up 28.2% from $466.11 million in April 2024. The spike contrasts with May and June, when inflows weakened again. May 2025 inflows fell to $288.17 million from $404.75 million in the prior year (-28.8%), while June 2025 declined to $292.25 million from $389.79 million (-25.0%).
The April surge helped soften the overall half-year decline but was not enough to reverse the downward trajectory that dominated most of the period.
What you should know
Although inflows through formal IMTO channels have declined, remittances remain an important lifeline for households, especially amid high inflation.
The decline comes despite recent efforts by the monetary authorities to stabilise the foreign-exchange market and attract more dollar inflows through formal systems.
- In January 2024, the CBN issued a circular that removed the previous cap on exchange rates quoted by IMTOs.
- Before the circular, IMTOs were required to quote rates within a permissible range of -2.5% to +2.5% around the previous day’s closing rate of the Nigerian Foreign Exchange Market.
- By the end of January 2024, the apex bank further released revised guidelines for the operations of IMTOs. The apex bank increased the application fee for an IMTO licence from N500,000 in 2014 to N10 million in the revised guidelines. This is an increase of about 1,900% in about 10 years.
- The CBN also established a minimum operating capital requirement for IMTOs at $1 million for foreign entities and an equivalent amount for local IMTOs.
- Also, IMTOs were barred from purchasing foreign exchange from the domestic market to fulfil their obligations.
- However, with another circular, it appears that this ban has been lifted, and IMTOs can now trade on the official market.
- The apex bank earlier reached an agreement with IMTOs to set up a Collaborative Task Force to double remittance inflows into the country. The task force formed to double remittance inflows into Nigeria reports directly to Olayemi Cardoso, the Governor of the CBN.
Policymakers have continued to emphasise diaspora remittances as a strategic source of stable FX supply.
However, global headwinds may be playing a role in the decline. Inflationary pressures in advanced economies where the Nigerian diaspora live and work, as well as tighter labour market conditions and tougher migration policies, may have reduced disposable income available for remittances.
