The Central Bank of Nigeria (CBN) has unveiled a strategic plan aimed at doubling foreign-currency remittance flows through formal channels, marking a significant move in the country’s financial landscape.
This initiative comes alongside the approval of Approval-in-Principle (AIP) status for 14 new International Money Transfer Operators (IMTOs), as revealed by the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali.
Speaking in Abuja on Wednesday, Mrs. Ali emphasized the pivotal role of this strategy in augmenting the sustained supply of foreign exchange within the official market.
She highlighted that the increased competition and innovation among IMTOs would not only reduce the cost of remittance transactions but also foster financial inclusion.
Mrs. Ali remarked, “This will spur liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEX), augmenting price discovery to enable a market-driven fair value for the naira.”
The decision to ramp up formal remittance flows aligns with the CBN’s ambitious target, as articulated by Governor Olayemi Cardoso, to double remittance inflows into Nigeria within a year.
Governor Cardoso emphasized the concerted effort to address existing bottlenecks, ensuring the seamless flow of funds through formal channels.
“This initiative reflects our commitment to removing barriers hindering remittance flows and achieving sustainable progress,” Cardoso stated.
The expansion of the IMTO network is a key component of the CBN’s broader remittance task force’s agenda, spearheaded by Cardoso.
The task force, formed following an executive learning session with IMTOs during the World Bank/IMF Spring Meetings, aims to collaborate closely with stakeholders to enhance the ease of doing business in Nigeria’s remittance ecosystem.
Moving forward, the task force will convene regularly to implement its strategy and monitor the impact of its measures on remittance inflows, signaling a proactive approach to address challenges and capitalize on opportunities in Nigeria’s financial landscape.