CBN Partners Money Transfer Companies in Bid to Double Remittances to Nigeria

The Central Bank of Nigeria (CBN) has secured the cooperation of some International Money Tranfer Organisations (IMTOs) to double the flow of remittances to Nigeria in its current bid to consolidate the modest improvement in the foreign exchange market dynamics.

The CBN Governor, Mr. Olayemi Cardoso, who disclosed this in Washington DC yesterday also said that the task force formed by the apex bank to handle the process of remittance inflows into Nigeria will be reporting directly to his office.

The apex bank governor while speaking at the end of the 2024 Spring Meetings of the International Monetary Fund (IMF) and the World Bank, said the federal government has reached an agreement with the IMTOs to set up a Collaborative Task Force to double remittance inflows into the country.

He said: “We came here with a very clear agenda and have held highly significant intentional meetings. Each one further supports the stability and ultimate growth of the Nigerian economy.

“Besides our meetings with multilateral financial institutions and foreign investor groups with a keen interest in developments in Nigeria, including the U.S Chamber of Commerce, we have very productive discussions with leading International money, transfer operators, IMTOs where we collectively committed to doubling remittance funds through formal channels into Nigeria in the immediate short to medium term.”

Nigeria relies heavily on remittance inflows to boost dollar supplies, which, according to the World Bank, average around $20.5 billion annually.

Present at the meetings were representatives of domestic and international stakeholders in the Nigerian forex market such as Lemfi, Flutterwave, J.P. Morgan, Remitly, VertoFx, Interswitch, BudPay, Makeba, TapTap Send, Visa, Venture Garden Group, other players in the remittances industry.

Some of the objectives outlined by the apex bank at the meeting include the need to reduce transaction costs associated with remittances, which the CBN identified as a significant barrier to formal inflows.

Another issue that came up was the need to double remittance inflows via formal channels, establishment of a stakeholders’ forum on IMTOs and Compliance standardisation: The importance of standardising compliance processes was underscored, with the CBN expressing its commitment to collaboration with regulators and relevant agencies to streamline remittance payment channels, reduce friction, and enhance efficiency.

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