By Benson Daniel
Nigeria recorded a strong increase in foreign exchange inflows through International Money Transfer Operators in the first quarter of 2026, with transactions rising by 45 per cent year on year to a record $1.29 billion.
Data from the Central Bank of Nigeria’s Q1 2026 Statistical Bulletin showed that IMTO inflows increased from $888.47 million recorded in the first quarter of 2025 to $1.29 billion during the period under review, representing an additional $398.26 million.
The latest figure was the highest first quarter IMTO inflow recorded in the CBN data covering 2019 to 2026, indicating a continued strengthening of formal channels for receiving remittances and foreign exchange from Nigerians and other sources abroad.
January accounted for the largest share of the quarter’s inflows, with $506.66 million recorded. February followed with $402.13 million, while March recorded $377.93 million.
Although monthly inflows declined after January, the overall performance remained significantly stronger than the corresponding period of 2025. February’s inflow, for instance, was substantially higher than the $288.82 million recorded in the same month last year, while March also improved from $317.60 million.
The increase comes amid measures by the CBN to strengthen regulation, improve transparency and encourage the use of formal channels for remittance transactions.
In March 2026, the apex bank directed International Money Transfer Operators to open and maintain naira settlement accounts with authorised dealer banks. The measure was aimed at improving monitoring of remittance transactions and strengthening transparency within the foreign exchange market.
The CBN had also previously removed the exchange rate cap for IMTOs, giving operators greater flexibility in determining exchange rates while operating within the broader framework of the official foreign exchange market.
The regulator subsequently introduced revised operating guidelines for IMTOs, including a significant increase in the application fee for new licences.
The stronger inflows suggest that the regulatory changes and improved incentives for formal transactions may be contributing to a gradual shift away from informal remittance channels.
Remittances remain an important source of foreign exchange for Nigeria, providing funds to households while also supporting the country’s external liquidity position.
The latest increase is particularly significant amid efforts to strengthen foreign exchange supply and improve the stability of the naira. Higher formal remittance inflows can provide additional dollar liquidity to the financial system and support legitimate foreign exchange transactions.
Nigeria’s broader foreign exchange position has also improved. CBN data showed that the country recorded net foreign exchange flows of $4.94 billion in March, representing an increase compared with the same month of 2025.
Total foreign exchange inflows reached $109.86 billion in 2025, up from $96.53 billion in 2024, indicating stronger overall activity in the country’s foreign exchange market.
The continued growth in IMTO inflows could therefore strengthen the role of formal remittance channels in Nigeria’s foreign exchange ecosystem.
For households receiving money from relatives and other sources abroad, greater use of regulated channels could also improve transparency and reduce the risks associated with informal transactions.
The challenge for policymakers will now be to sustain confidence in formal remittance channels by ensuring competitive exchange rates, efficient settlement systems, strong regulation and convenient access for recipients.
If the current trend continues, IMTOs could become an increasingly important source of foreign exchange while helping Nigeria deepen the formal financial system and improve the transparency of international remittance flows.
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