By Benson Daniel
Inflows through International Money Transfer Operators rose to a record $1.29 billion in the first quarter of 2026, representing a 45 per cent increase from the $888.47 million recorded in the corresponding period of 2025.
The latest figures from the Central Bank of Nigeria show that formal remittance channels continued to gain momentum as more Nigerians abroad sent funds home through regulated international money transfer platforms.
The $1.29 billion recorded between January and March represents an increase of about $398.26 million compared with the same period last year.
The growth was recorded across the three months, although monthly inflows moderated after January. March alone recorded $377.93 million, compared with $317.60 million in March 2025.
The stronger performance highlights the growing importance of diaspora remittances to Nigeria’s foreign exchange market and broader economy. Remittances provide households with additional income while also contributing to the supply of foreign currency through formal channels.
The increase also comes amid efforts by the CBN to strengthen the regulation and transparency of international money transfer operations. In March, the apex bank introduced additional measures requiring IMTOs to operate designated naira settlement accounts with authorised dealer banks and route remittance related transactions through those accounts.
The regulatory measures are intended to improve transparency, strengthen compliance and ensure that more remittance transactions pass through the formal financial system.
The CBN has also moved to align IMTO transaction pricing with market based foreign exchange rates, a measure aimed at improving price discovery and reducing distortions in the remittance market.
For Nigeria, stronger formal remittance inflows could provide additional support for foreign exchange liquidity at a time when the country continues to pursue reforms aimed at stabilising the currency market.
The development could also benefit financial institutions and fintech companies involved in cross border payments as competition increases for a larger share of Nigeria’s expanding remittance market.
Beyond their foreign exchange implications, remittances remain an important source of financial support for Nigerian households. Funds sent by Nigerians living abroad are commonly used for education, healthcare, housing, household expenses and business activities.
The record first quarter performance therefore reinforces the significance of diaspora Nigerians to the domestic economy and highlights the potential benefits of policies designed to encourage transfers through official channels.
The CBN’s ongoing regulatory reforms are expected to remain important in sustaining the growth of formal remittance inflows. Greater transparency, competitive pricing and efficient payment systems could encourage more Nigerians abroad to use regulated channels.
If the upward trend continues through the rest of the year, IMTO inflows could provide a stronger contribution to Nigeria’s external finances while deepening the connection between the diaspora and the domestic financial system.
Leave a comment