CBN Engages IMTOs to Raise Remittance Inflows to $1 Billion
- CBN asserted that it had alliances with leading international money transfer companies
- This is aimed at raising the remittance inflows to $1 billion through official channels
- The CBN governor said the goal of Nigeria's engagement was to clear the path for economic development
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
In order to increase remittance inflows to $1 billion through official channels, the Central Bank of Nigeria (CBN) claims to have partnered with top international money transfer operators (IMTOs).
Source: Getty Images
At a press conference on Saturday in Washington, DC, CBN Governor Olayemi Cardoso discussed the remittance target.
The governor of the CBN and the finance minister, Wale Edun, are leading the Nigerian team to the annual meetings of the World Bank and the International Monetary Fund (IMF) in the United States (US) this week, where they have been meeting with investors, world leaders, and members of the diaspora.
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During the press conference, The cable reported that Cardoso discussed the meetings' outcomes and stated that each one was intended to improve the stability of the financial and macroeconomic systems.
According to him, Nigeria's involvement was meant to pave the way for inclusive, sustainable economic growth that benefits all Nigerians.
“Our team held productive discussions with leading IMTOs, where we collectively committed to growing remittance flows to 1 billion US dollars through formal channels into Nigeria…monthly,” Cardoso said.
“This target is both ambitious and achievable, and we are fully committed to mobilising resources to reinforce the collaborative task force which I am leading at the bank. We’re confident that we’ll get there.”
According to Cardoso, the team's main goal is to advance the cause by locating and eliminating obstacles that prevent money from entering Nigeria through the official routes.
The CBN announced on October 17 that as of the end of September, remittance inflows had increased to $600 million.
In an effort to boost liquidity, the regulator gave 14 new international money transfer operators (IMTOs) approval in principle (AIP) on May 15.
Prior to the approval, the apex bank mandated the IMTOs to only make naira payments to recipients in Nigeria, removing the allowable limit of the foreign exchange (FX) rate quoted for such transactions.
Additionally, on June 25, the apex bank allowed qualified IMTOs to trade on the official FX window, giving them access to the official market's naira liquidity.
CBN grants new licence to another firm
Legit.ng reported that Fincra announced that it has obtained an International Money Transfer Operator (IMTO) licence from the Central Bank of Nigeria (CBN), allowing the business to incorporate cross-border payment services into its product offerings in the Nigerian market.
The license was obtained after a rigorous review and approval process by the CBN according to a statement by the payment company.
Fincra proved throughout this process that it was dedicated to adhering to regulations by putting in place effective counterterrorism financing (CTF) and anti-money laundering (AML) measures, as well as comprehensive rules, procedures, and systems to stop illegal financial activity.
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Source: Legit.ng
