Nigeria: CBN Partners with International Money Transfer Companies to Boost Remittance to Nigeria

The Central Bank of Nigeria (CBN) has joined forces with multiple International Money Transfer Organizations (IMTOs) to double the influx of remittances to Nigeria, a move aimed at bolstering the dynamics of the foreign exchange market.

Mr. Olayemi Cardoso, the Governor of the CBN, disclosed this initiative during a meeting in Washington DC, attended by representatives from both domestic and international stakeholders in the Nigerian forex market. Among them were Lemfi, Flutterwave, J.P. Morgan, Remitly, VertoFx, Interswitch, BudPay, Makeba, TapTap Send, Visa, Venture Garden Group, and other significant players in the remittances industry.

Cardoso highlighted that the task force established by the CBN to oversee remittance inflows into Nigeria would report directly to his office. He expressed pride and confidence, noting that as of April 2024, the naira had been recognized as the best-performing currency globally. Furthermore, he disclosed that the federal government had reached an agreement with IMTOs to create a Collaborative Task Force focused on doubling remittance inflows into the country.

In his statement, Cardoso remarked:

“We came here with a very clear agenda and have held highly significant international meetings, each one further supporting 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 and IMTOs where we collectively committed to doubling remittance funds through formal channels into Nigeria in the immediate short to medium term.”

Reflecting on the challenges faced by the current leadership of the apex bank, Cardoso acknowledged a season of hurdles, including inflation and FX volatility. Nevertheless, he expressed satisfaction with the achieved relative stability, particularly in the FX market, enabling a transition from firefighting to strategic planning across crucial areas.

These strategic areas include enhancing the ease of doing business in Nigeria, consolidating gains through an efficient and transparent market system, and promoting financial and economic inclusion for small businesses and households. He emphasized the exploration of smarter technology utilization and remote banking to reduce transaction costs and enhance accessibility to the financial system.