International transfers through international money transfers operators (IMTOs) will be paid out in naira in line with recent guidelines from the Central Bank of Nigeria (CBN).
Some of the affected IMTOs include Western Union, MoneyGram, Rapidtransfer, Ria, and other CBN approved IMTOS, according to a recent notice issued by Ecobank Nigeria, which was seen by Nairametrics.
What the Notice Says
The Ecobank Nigeria notice read:
- “We would like to bring to your attention recent regulatory changes affecting international money transfers into Nigeria through Western Union, MoneyGram, Rapidtransfer, Ria, and other CBN approved IMTOS.
- “The Circular issued by the Central Bank of Nigeria (CBN) dated January 31, 2024, stipulates that ALL in-bound money transfers to Nigeria (via the above mentioned IMTOS) will be paid ONLY in Naira through a bank account or in cash at the prevailing rate in the Nigerian Foreign Exchange Market.”
Only $200 can be paid through cash
The notice also noted that only international transfer below $200 can be paid in cash in naira. Any amount above $200 will be paid in a bank account.
The notice added:
- “Furthermore, transfers exceeding the Naira equivalent of $200 must be credited to the recipient’s bank account. Naira cash payment equivalent for amounts below $200 will require an acceptable means of identification.”
It was also noted that the acceptable means of identification for cash payments include International passport Driver’s license, National Identity card, and INEC Permanent Voters Card (PVC).
More Insights
- Nairametrics recently reported that the CBN restricted the operations of IMTOs to only inbound transfers, stopping outbound transfers.
- This implies that IMTOs can no longer facilitate money transfers from Nigeria to other countries, according to the revised guidelines for the operations of IMTOs, which were officially released on January 31, 2024.
- Nairametrics also recently reported that the CBN banned banks and financial technology companies (fintechs) from international money transfer services.
- This development coincides with an earlier circular from the CBN aimed at curbing what it perceives as rampant foreign currency speculation and hoarding among Nigerian banks.
