CBN Orders International Transfers Through Western Union, Others To Be Paid In Naira Instead Of Dollar

 

International transfer through international money transfer operators (IMTOs) henceforth will be paid out in naira in line with recent guidelines from the Central Bank of Nigeria (CBN).

 

This is in line with the recent directives from the Central Bank of Nigeria, CBN.

A recent notice from Ecobank Nigeria said several IMTOs including Western Union, MoneyGram, Rapidtransfer, Ria, and other IMTOs approved by the Central Bank of Nigeria have been affected.

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 inbound 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.”

 

 

TThe notice also noted that only international ttransfers 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).

Also recall 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.

CBN also 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.