In response to the recent directive issued by the Central Bank of Nigeria (CBN), International Money Transfer Operators (IMTOs), have announced the suspension of dollar transfers to Nigerian recipients. Effective immediately, IMTOs will only facilitate transactions in naira.
The CBN’s directive, communicated in a document published on January 31, restricts IMTOs to solely handling inbound transfers, aiming to liberalise the foreign exchange market and enhance transparency.
This move comes amid efforts to address the currency’s volatility and clear forex backlogs amounting to approximately $7 billion.
Under the revised guidelines, IMTOs are now defined as entities approved by the CBN to facilitate fund transfers from individuals or entities residing abroad to recipients in Nigeria, exclusively operating within the inbound money transfer domain.
IMTOs are instructed to quote exchange rates for naira payouts based on prevailing market rates at the nation’s official foreign exchange market.
World Remit, one of the approved IMTOs, has updated its app for Nigeria accordingly, notifying users that dollar transfers are no longer supported. Instead, customers are encouraged to send money in naira to continue availing themselves of the service.
Similarly, another operator, Sendwave, stated its compliance with the CBN directive, informing customers of the cessation of USD transfers to Nigeria and urging them to transition to sending naira transfers.
The move marks a significant shift in the operations of IMTOs in Nigeria, reflecting efforts by regulatory authorities to streamline foreign exchange transactions and ensure stability in the country’s financial markets.
