Echotitbits – Nigeria News

Tag: IMTO

  • Diaspora Remittances Hit Record High as Nigeria Simplifies FX Inflows

    Diaspora Remittances Hit Record High as Nigeria Simplifies FX Inflows

    Diaspora remittances into Nigeria reportedly hit a record monthly high in January 2026, driven by FX market reforms that narrowed the gap between official and parallel market rates and encouraged formal channels.

    The CBN’s incentive approach and the licensing of new International Money Transfer Operators (IMTOs) have helped reduce transfer costs, with analysts describing remittances as a key pillar for reserves stability.

    Policy discussions are also shifting toward remittance-backed bonds that would allow diaspora funds to support infrastructure projects, converting consumption inflows into long-term development capital.

    Echotitbits take: For years, billions bypassed the official system. Better FX transparency is restoring diaspora confidence in formal channels. The next step—Diaspora Bonds—could help close Nigeria’s infrastructure funding gap, but only if managed transparently and credibly.
    Source: This Day – https://www.thisdaylive.com/2026/01/17/how-cbn-reforms-are-boosting-nigerias-fx-inflows-balance-of-payments/ 2026-01-27

    Photo Credit: This Day

  • CBN Data Shows Drop in Diaspora Remittance Inflows via IMTOs

    CBN Data Shows Drop in Diaspora Remittance Inflows via IMTOs

    Photo Credit: The Punch
    2025-12-26 06:20:00

    In an update published by *PUNCH*, Central Bank of Nigeria (CBN) data shows inflows through International Money Transfer Operators (IMTOs) declined, underlining how fragile FX supply remains even after reforms aimed at improving official-market pricing.

    The report points to pressures that can affect remittances—global cost-of-living stress, immigration policy shifts in key sending countries, and the growing use of informal channels that bypass official reporting.

    For Nigeria’s FX market, reduced IMTO inflows can tighten liquidity, complicate supply management, and intensify demand pressure—especially for households and SMEs that rely on remittances for consumption and working capital.

    Analysts will likely watch whether the trend persists into subsequent quarters, and whether policy signals further encourage formal remittance routing.

    *Nairametrics* wrote that “inflows fell to $888.39 million in Q1 2025, compared to $1.08 billion” in the same period of 2024, while *Proshare* stated inflows “declined by -6% quarter-on-quarter (QoQ) to US$888m in Q1 2025.”

    Echotitbits take: Remittances are a lifeline—but they’re also a policy barometer. If official inflows keep sliding, Nigeria may need stronger incentives for formal channels (pricing, speed, trust) and tighter scrutiny of leakages to informal pipelines.

    Source: The Punch — Dec 26, 2025 (https://punchng.com/cbn-reports-276m-drop-in-imtos-inflows/)

    Photo credit/source: The Punch
    The Punch 2025-12-26