Banks to pay IMTO dollar transactions in naira after CBN’s directive

Nigerian banks will begin to pay dollar transactions through international money transfer operators (IMTOs) to customers in naira.

The decision, according to a notice to customers, follows the recently announced regulations by the Central Bank of  Nigeria (CBN) on IMTOs operations.

The CBN, had on January 31, 2024, revised guidelines for the operations of IMTOs. According to the new directive, the apex bank said operators will no longer facilitate money transfers from Nigeria to other countries.

The financial regulator also asked IMTOs to quote exchange rates for naira payout to beneficiaries based on the prevailing market rates at the nation’s official foreign exchange market (FX) market.

In compliance, on February 9, 2024, IMTOs commenced the implementation of the directive, halting dollar transfers to Nigerians.

In a similar vein, commercial banks in Nigeria also announced implementation.

Access Bank told, customers in a notice seen on Tuesday, that all inbound money transfers will now be paid in naira.

The bank also said transfers above the naira equivalent of $200 would be sent to the beneficiary’s account, while amounts lower would require a means of identification.

“This is to inform you that on January 31st, 2024, the Central Bank of Nigeria (CBN) issued a Circular which states that all in-bound money transfers will now be paid in the following ways,” the notice reads.

“All transfers will be received only in Naira, either directly into the beneficiary’s bank account or received in cash.

“Transfers above the Naira equivalent of $200 will be credited to the beneficiary’s bank account, while cash payment equivalent for amount below $200 will require the following means of Identification: a. International Passport; b. Driver’s License; c. National Identity Card; d. INEC Permanent Voters Card (PVC).”

EcoBank, in a similar notice, said the regulatory changes would affect international money transfers “into Nigeria through Western Union, MoneyGram, Rapidtransfer, Ria, and other CBN approved IMTOS”.