Nigeria’s International Money Transfer Operator (IMTO) inflows declined by $193.14 million in the first quarter of 2025 despite the Central Bank of Nigeria’s (CBN) plan to double remittances through formal channels.
Data from the CBN’s quarterly statistical bulletin shows that inflows fell to $888.39 million in Q1 2025, compared to $1.08 billion in the same period of 2024.
This represents a 17.8% decline year-on-year and highlights the fragile momentum of diaspora remittances into Africa’s largest economy.
Although lower than last year, inflows in the first quarter of 2025 still outpaced the $770.23 million recorded in Q1 2023, suggesting that remittance levels remain elevated compared to pre-2024 levels.
However, the sharp drop from last year underlines the challenge facing policymakers in sustaining inflows amid global economic uncertainty and domestic foreign exchange pressures.
The monthly data shows a consistent slowdown across January, February and March when compared with 2024 figures.
In January 2025, inflows were $281.97 million, down from $390.86 million in January 2024, reflecting a 27.9% fall.
February 2025 recorded $288.82 million, compared to $326.91 million in February 2024, a 11.6% decline.
March inflows stood at $317.60 million, lower than $363.76 million in the same month of 2024, a 12.7% drop.
When measured against 2023, however, inflows in February and March 2025 showed some resilience, outpacing the $195.23 million and $279.79 million posted in those months, respectively. This indicates that while momentum has slowed relative to 2024’s surge, remittance flows are not yet collapsing.
Naijaonpoint earlier reported that Nigeria’s foreign exchange inflows through IMTOs rose in 2024, reaching a total of $4.76 billion.
This was a significant 44.5% increase from the $3.30 billion recorded in 2023.
The surge in IMTO inflows was reported to be closely tied to the reforms introduced by the CBN under Governor Olayemi Cardoso since his assumption of office in September 2023.
In January 2024, the CBN issued a circular that removed the previous cap on exchange rates quoted by IMTOs.
IMTO inflows continue to be a vital source of foreign currency for Nigeria, supporting families, businesses, and the broader economy amid ongoing FX market challenges.
The decline in Q1 2025 comes at a delicate time for the CBN, which has repeatedly emphasised remittances as a critical pillar of foreign exchange supply.
The decline in Q1 2025 comes at a delicate time for the CBN, which has repeatedly emphasised remittances as a critical pillar of foreign exchange supply.
Diaspora inflows are seen as vital in easing pressure on Nigeria’s reserves, complementing oil earnings and supporting naira stability. A sustained slowdown risks undermining these efforts, especially as demand for foreign exchange remains high for imports, external debt servicing and capital repatriation.
Global headwinds may also be playing a role in the decline. Inflationary pressures in advanced economies where the Nigerian diaspora live and work, as well as tighter labour market conditions, may have reduced disposable income available for remittances.
Domestically, informal channels continue to pose competition to official IMTO flows, limiting the CBN’s ability to capture the full scale of remittance activity.