December 26, (THEWILL) — The Central Bank of Nigeria (CBN) has reported a $276 million decline in inflows from International Money Transfer Operators (IMTOs), signalling softer diaspora remittance receipts amid shifting global and domestic financial conditions.
The drop reflects moderation in foreign currency inflows through official remittance channels, which have been a key source of dollar supply to the Nigerian economy following recent foreign exchange market reforms.
IMTO inflows had previously supported naira liquidity and helped stabilise conditions in the FX market.
Analysts attribute the decline to a combination of factors, including weaker disposable income among Nigerians in the diaspora due to higher living costs abroad, exchange rate adjustments, and increased competition from alternative remittance channels.
Some market participants also point to timing effects and seasonal variations in remittance flows.
The slowdown in IMTO receipts comes at a sensitive time, as authorities continue efforts to sustain FX market stability and rebuild external buffers.
Diaspora remittances remain one of Nigeria’s most resilient sources of foreign exchange, alongside oil exports and portfolio inflows.
Despite the decline, economists caution that a single-period drop does not necessarily signal a structural reversal.
They note that IMTO inflows can be volatile and may rebound as global financial conditions ease and confidence in Nigeria’s FX framework strengthens.
Going forward, market watchers expect remittance flows to remain closely tied to exchange rate transparency, ease of repatriation, and broader macroeconomic stability.
Sustained reforms, they argue, will be critical to maintaining Nigeria’s attractiveness as a remittance destination and supporting FX liquidity in the medium term.
Ogochukwu Onwaeze
