Nigeria received $2.07 billion in remittances through International Money Transfer Operators (IMTOs) in the first half of 2025. This marks an 11.78 percent decline from $2.34 billion in the same period of 2024.
Okay News reports that Central Bank of Nigeria data revealed a $275.93 million shortfall year-on-year. Remittances remain vital for foreign exchange liquidity and household support.
The drop persisted despite foreign exchange reforms and efforts to channel flows through formal systems.
Q1 2025 saw the sharpest fall. Inflows totalled $888.39 million, down 17.9 percent from $1.08 billion in Q1 2024.
Monthly breakdowns show January at $281.97 million (-27.8 percent), February $288.82 million (-11.6 percent), and March $317.60 million (-12.7 percent).
Q2 moderated to $1.18 billion, only 6.6 percent below Q2 2024’s $1.26 billion.
April surged to $597.44 million, up 28.2 percent from $466.11 million. May and June weakened to $288.17 million (-28.8 percent) and $292.25 million (-25.0 percent).
The April spike softened the overall decline. It could not reverse the broader downward trend.
Reforms aimed to boost formal inflows. These include removing IMTO exchange rate caps in 2024 and revised operational guidelines.
New rules raised application fees to N10 million and set $1 million minimum capital. IMTOs gained access to the official FX market.
A Collaborative Task Force with the CBN seeks to double remittances. It reports directly to Governor Olayemi Cardoso.
Global factors may contribute. Inflation in host countries reduces diaspora disposable income.
Tighter labour markets and migration policies limit sending capacity.
Remittances support consumption amid domestic inflation. They bolster balance of payments.
The decline highlights challenges in sustaining inflows. It underscores needs for continued policy incentives.
