The Central Bank of Nigeria (CBN) has embarked on plans to double foreign currency remittance flows through formal channels by granting Approval-in-Principle (AIP) to 14 new International Money Transfer Operators (IMTOs). This move aims to stimulate liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEM), facilitating price discovery and enabling a market-driven fair value for the naira.
According to Mrs. Hakama Sidi Ali, the Bank’s Acting Director of Corporate Communications, this initiative will contribute to increasing sustained foreign exchange supply in the official market. By promoting greater competition and innovation among IMTOs, the plan is expected to lower the cost of remittance transactions and enhance financial inclusion.
Ali highlighted the oversubscription of government securities issuances, with foreign investors accounting for more than 75 percent of bids received at auctions conducted on March 1 and 6, 2024. This underscores the significance of fostering an environment conducive to foreign currency inflows, which can contribute to economic stability and growth.
Economy Experts say have described the CBN’s decision to approve additional IMTOs as one that reflects its commitment to enhancing the efficiency and transparency of the foreign exchange market. As a result, stakeholders are expected to closely monitor their impact on remittance flows and exchange rate dynamics, with the expectation of positive outcomes for both the economy and consumers.
