The Central Bank of Nigeria (CBN) facilitated the transfer of around $600 million through International Money Transfer Operators (IMTOs) over the past year, according to CBN Governor Olayemi Cardoso. He made the disclosure during a fireside chat at the 30th Nigeria Economic Summit (NES30), hosted by the Nigeria Economic Summit Group (NESG) in Abuja.
Cardoso highlighted the significant rise in remittance volumes since the CBN implemented targeted policies to increase foreign exchange inflows. “When we started, the volumes from remittances were around $200 million, and as of the end of September, we have almost reached $600 million,” he said.
The CBN Governor attributed this growth to the bank’s strategic engagement with international operators. He noted that during his meetings with various IMTOs in Washington earlier this year, efforts were made to simplify licensing processes and resolve operational challenges. “We engaged them extensively, understood their problems, and overhauled operations to make it easier for them to get their licenses and operate,” he explained.
This initiative has played a crucial role in boosting remittance inflows, providing Nigeria with much-needed foreign exchange. Cardoso emphasized that strengthening IMTOs and streamlining their operations has been key to the CBN’s success in this area.
During the summit, Cardoso also addressed broader economic concerns, underscoring the need to address Nigeria’s core economic challenges. “There is no substitute for the fundamentals of the economy,” he stated, stressing that sustainable growth requires effective functioning of key economic sectors and the building of robust institutions.
In addition, Cardoso highlighted the importance of tackling inflation, which he described as a significant threat to purchasing power and investment. He reiterated that controlling inflation is essential for driving economic growth and supporting productive sectors.
On the ongoing recapitalization efforts within Nigeria’s banking sector, Cardoso expressed optimism, acknowledging that while some institutions are still working to raise capital, progress is being made. He assured that the CBN is strengthening its banking supervision to help banks navigate economic challenges and maintain stability.
Cardoso also outlined his vision for enhancing the CBN’s institutional capacity, positioning it to compete with the best central banks worldwide. He stressed the need for the CBN to focus on policy development rather than routine operations. “We need to build capacity within the bank, give responsibility, and ensure that the CBN is an institution that can compete globally,” he said.
Regarding the CBN’s interventions in various sectors, Cardoso noted that the pool of intervention funds is limited and that existing programmes must be completed before new ones are launched. The CBN, he said, is collaborating with development banks like the Bank of Industry (BOI) to ensure future interventions are effectively managed.
Cardoso concluded by reaffirming the CBN’s commitment to fostering economic growth while maintaining the stability of Nigeria’s financial system. “With time, we will find the appropriate model that will ensure sustainable economic progress without jeopardizing the financial system’s stability,” he stated.
