MARKET NEWS

• 50.2% growth in seven months
• We won’t rest on our success, says CBN

Nigeria recorded $947 million in remittance inflows through International Money Transfer Operators (IMTOs) in July, the Central Bank of Nigeria (CBN) announced yesterday. 

The figure represented the highest monthly inflow ever recorded through formal channels and approaching the $1 billion monthly target set by CBN Governor, Olayemi Cardoso.

IMTO inflows reached $3.8 billion in the first seven months of 2026, 50.2 per cent higher than the same period in 2025, pointing to a significant strengthening in flows through formal channels.

The increase followed a series of reforms by the CBN aimed at making formal remittance channels more competitive, transparent and accessible.

These included a move to a more market-determined exchange rate, reforms to the regulatory framework for IMTOs, and the introduction of the Non-Resident Bank Verification Number (NRBVN), alongside closer engagement with IMTOs, banks, and Nigerian diaspora communities.

The significance extends beyond the headline figure. Increasing diaspora flows through formal channels boosts foreign-exchange liquidity and transparency, supports households and investment, and strengthens Nigeria’s external financing position. 

“When we set a clear ambition to reach $1 billion a month in remittance inflows through formal channels nearly two years ago, some people thought we were dreaming. At $947 million in July, we are now approaching that milestone,” Cardoso said.

While individual monthly figures will naturally vary, the CBN’s focus is on the broader trajectory and on sustaining the shift towards formal channels. The significant increase in inflows recorded so far in 2026 points to the growing impact of reforms designed to make formal remittance channels more competitive, accessible and transparent.

The CBN is building on this momentum by deepening engagement with Nigerian diaspora communities and financial-sector partners across key remittance corridors. As part of its wider international engagements, the Bank will continue to use opportunities in major global financial centres to engage diaspora communities, IMTOs, banks and other stakeholders to reduce friction, widen access and bring a greater share of remittance flows into formal channels. 

Cardoso added: “July is an important marker, but our focus is not on a single month. It is on creating the conditions for sustained growth in formal remittances. We expect to keep seeing improvement and believe Nigeria can reach and ultimately sustain monthly inflows above US$1 billion.”

The apex bank had directed all IMTOs to open naira settlement accounts. With the directive, the operators were mandated to route all remittance transactions through the naira settlement accounts with effect from May 01, 2026.

By this move, recipients of diaspora remittances are being paid in the local currency, ending decades of dollar payments to Nigerians when relatives abroad send money home.

The CBN stated that the latest policy was aimed at deepening diaspora remittances while improving transparency, traceability, and monitoring of foreign exchange (forex) flows.

In a circular signed by Musa Nakorji, CBN’s Director of Trade and Exchange Department, the apex bank stated that the directive, encompassed all transactions related to international money transfers, including disbursements to beneficiaries and other settlements.

“All IMTOs are hereby directed to open naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts, maintained with authorised dealer banks (ADBs) in Nigeria,” CBN stated. 

The apex bank said all transactions must be processed exclusively through the designated accounts.

According to CBN, IMTOs may designate existing accounts or open new ones and are allowed to operate multiple settlement accounts across different dealer banks.

The CBN also directed IMTOs to notify its trade and exchange department of all designated settlement accounts and provide updates when necessary.

To enhance market efficiency, the apex bank stated that the authorized dealer banks may process foreign currency transfers from IMTO settlement accounts to other authorised dealers and approved participants, including bureau de change (BDC) operators.

On pricing, the apex bank instructed IMTOs to benchmark their rates against real-time market prices on Bloomberg’s BMatch platform.

CBN stated: “IMTOs shall observe real-time market prices from the Bloomberg BMatch and utilise this as guidance for pricing transactions with their customers and authorised dealers”.

The apex bank stated that the move would improve price discovery, reduce information asymmetry, and encourage participation in the official forex market.

The regulator also reminded the IMTOs to comply with anti-money laundering, combating the financing of terrorism, and counter-proliferation financing (AML/CFT/CPF) requirements, while maintaining proper records for audit and regulatory review.

The new directive builds on earlier reforms introduced by the CBN on January 31, 2024, which provided updated guidelines for the licensing and operations of international money transfer services in Nigeria. 

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The apex bank stressed that all IMTOs must comply fully with the new rules and maintain proper records of their transactions for regulatory checks and audit purposes.

It also reminded operators to continue to meet required standards on anti-money laundering, combating the financing of terrorism, and counter-proliferation financing, as part of efforts to safeguard the integrity of Nigeria’s financial system.

The move is part of broader efforts by the CBN to strengthen foreign exchange inflows from Nigerians in the diaspora, improve transparency in the system, and ensure that remittance transactions contribute more effectively to the country’s economic stability.