The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has highlighted the challenges faced by international money transfer operators (IMTOs) in Nigeria, citing charges and fluctuating foreign exchange (FX) rates as significant issues.
Speaking at a news conference on Tuesday during the 295th Monetary Policy Committee (MPC) meeting in Abuja, Cardoso discussed the CBN’s recent efforts to collaborate with IMTOs to enhance remittance flows into Nigeria.
The CBN and IMTOs on April 20 collectively committed to doubling remittance flows through formal channels.
Subsequently, on May 15, the CBN granted approval in principle (AIP) to 14 new IMTOs.
Cardoso detailed a series of meetings with IMTOs to address their concerns. “We originally had a virtual meeting earlier on and during my visit to the World Bank/IMF meetings last month, we actually reached out and invited all of them to come for a meeting,” the CBN governor said. He expressed appreciation for the IMTOs’ commitment, noting that many representatives flew in from various parts of the world to participate in the discussions.
“We had a number of hours in private discussions, understanding what their problems were, and seeing how we could help them to ensure that they are more effective in the things they do,” Cardoso explained. The CBN governor also shared future challenges foreseen by the financial regulator, emphasizing the collective responsibility in addressing these issues.
Cardoso highlighted two primary concerns raised by the IMTOs: the costs associated with commissions and charges, and the impact of fluctuating exchange rates.
“The IMTOs highlighted two concerns. One was on the issue of the price and the commission and charges they are required to pay and of course, the issue of — at some point in time — the rates,” he said.
He noted that the recent convergence of exchange rates has alleviated some of these concerns.
