Money transfer operators halt inbound FX transactions after CBN’s directive

International Money Transfer Operators (IMTOs) have commenced the implementation of a directive by the Central Bank of Nigeria (CBN) to halt dollar transfers to Nigerians.

The development follows a recent directive by the apex bank, restricting the operations of IMTOs to only inbound transfers.

In its revised guidelines for the operations of IMTOs on January 31, 2024, 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.

The IMTOs, confirming the implementation in a notice to customers seen by TheCable, said the directive from the CBN has led to some changes in the services they offer.

“In compliance with a recent directive from the Central Bank of Nigeria (CBN), we regret to inform you that Sendwave, along with all money transfer operators, is no longer able to support USD transfers to Nigeria. We’d encourage you to switch to sending Naira transfers instead,” the operator said.

In a similar notice, another IMTO, Worldremit, said transfers would not be paid out in USD.

“If you’re about to send money to Nigeria — this is important. The Central Bank of Nigeria (CBN) has directed that it’s no longer possible for any money transfers to be paid out in USD in Nigeria. So that, of course, includes World Remit money transfers,” the firm said.

“But please don’t worry. You can still enjoy the same quick, safe and affordable World Remit service to Nigeria by sending money in Naira instead.”

IMTOs are firms that accept cash to transmit to persons resident in Nigeria or another country.

They also carry out cross-border transfer services for personal purposes such as money transfer services towards family maintenance and money transfer services for foreign tourists visiting Nigeria.