IMTO inflows down $193.14 million in Q1 2025, miss remittance goal

Nigeria’s Worldwide Cash Switch Operator (IMTO) inflows declined by $193.14 million within the first quarter of 2025. 

Information from the CBN’s quarterly statistical bulletin exhibits that inflows fell to $888.39 million in Q1 2025, in comparison with $1.08 billion in the identical interval of 2024.

This represents a 17.8% decline year-on-year and highlights the delicate momentum of diaspora remittances into Africa’s largest economic system.

Though decrease than final 12 months, inflows within the first quarter of 2025 nonetheless outpaced the $770.23 million recorded in Q1 2023, suggesting that remittance ranges stay elevated in comparison with pre-2024 ranges.

Nonetheless, the sharp drop from final 12 months underlines the problem going through policymakers in sustaining inflows amid international financial uncertainty and home international alternate pressures.

What the info exhibits 

The month-to-month knowledge exhibits a constant slowdown throughout January, February and March in comparison with 2024 figures.

In January 2025, inflows had been $281.97 million, down from $390.86 million in January 2024, reflecting a 27.9% fall.

February 2025 recorded $288.82 million, in comparison with $326.91 million in February 2024, a 11.6% decline.

March inflows stood at $317.60 million, decrease than $363.76 million in the identical month of 2024, a 12.7% drop.

When measured in opposition to 2023, nevertheless, inflows in February and March 2025 confirmed some resilience, outpacing the $195.23 million and $279.79 million posted in these months, respectively. This means that whereas momentum has slowed relative to 2024’s surge, remittance flows will not be but collapsing.

What it’s best to know 

Nairametrics earlier reported that Nigeria’s international alternate inflows by means of IMTOs rose in 2024, reaching a complete of $4.76 billion.

This was a big 44.5% improve from the $3.30 billion recorded in 2023.

The surge in IMTO inflows was reported to be carefully tied to the reforms launched by the CBN beneath Governor Olayemi Cardoso since his assumption of workplace in September 2023.

In January 2024, the CBN issued a round that eliminated the earlier cap on alternate charges quoted by IMTOs.

• Earlier than the round, IMTOs had been required to cite charges inside a permissible vary of -2.5% to +2.5% round the day before today’s closing charge of the Nigerian International Trade Market.
• By the top of January 2024, the apex bank additional launched revised tips for the operations of IMTOs. The apex bank elevated the applying payment for an IMTO licence from N500,000 in 2014 to N10 million within the revised tips. This is a rise of about 1,900% in about 10 years.
• The CBN additionally established a minimal working capital requirement for IMTOs at $1 million for international entities and an equal quantity for native IMTOs.
• Additionally, IMTOs had been barred from buying international alternate from the home market to fulfil their obligations.
• Nonetheless, with one other round, it seems that this ban has been lifted, and IMTOs can now commerce on the official market.
• The apex bank earlier reached an settlement with IMTOs to arrange a Collaborative Process Drive to double remittance inflows into the nation. The duty drive shaped to double remittance inflows into Nigeria stories on to Olayemi Cardoso, the Governor of the CBN.

IMTO inflows proceed to be a significant supply of international forex for Nigeria, supporting households, companies, and the broader economic system amid ongoing FX market challenges.

The decline in Q1 2025 comes at a fragile time for the CBN, which has repeatedly emphasised remittances as a essential pillar of international alternate provide.

Diaspora inflows are seen as important in easing strain on Nigeria’s reserves, complementing oil earnings and supporting naira stability. A sustained slowdown dangers undermining these efforts, particularly as demand for international alternate stays excessive for imports, exterior debt servicing and capital repatriation.

World headwinds can also be enjoying a job within the decline. Inflationary pressures in superior economies the place the Nigerian diaspora dwell and work, in addition to tighter labour market circumstances, could have lowered disposable earnings accessible for remittances.

Domestically, casual channels proceed to pose competitors to official IMTO flows, limiting the CBN’s capacity to seize the total scale of remittance exercise.