The Central
Bank of Nigeria (CBN) has directed International Money Transfer Operators
(IMTOs) to commence remittance payout in Naira to beneficiaries and foreign
exchange.
In the
Circular referenced FED/FEM/PUB/FPC/001/004 issued by the Director of Trade and
Exchange of CBN, Ozoemena Nnaji directed that the Investors’ and Exporters’
Window foreign exchange rate should be used in determining the rate for such
Naira payout.
“Further to the Circular referenced
FED/FEM/FPC/01/011 dated November 30, 2022, in respect of the above subject,
the Central Bank of Nigeria hereby announces Naira as a payout option for
receipts of proceeds of International Money Transfers.
“Accordingly,
all recipients of Diaspora remittances through the CBN-approved International
Money Transfer Operators (IMTOs) on the attached list shall subsequently
receive Naira payment in addition to USD and e-Naira as payout options.
“To avoid
doubt, IMTOs must pay out the proceeds using the Investors’ & Exporters’
window rate as the anchor rate on the transaction date”, the Circular stated.
Recall that
on June 14, the apex bank introduced foreign exchange reforms leading to the
unification of the forex window.
This recent policy removal is another step towards loosening
the strict control the CBN has exercised over FX rates in the last five years.
It’s also great for customers who can now choose between receiving their funds
in foreign currency, eNaira and the Naira. Customers who choose to receive
their funds in Naira will be paid using the Investors & Exporters Window
rate on the day of the transaction.
The CBN’s
circular also updated the list of registered IMTOs in Nigeria. In February
2021, the CBN listed 47 approved IMTO’s, but this week’s circular expanded the
list to 62 companies. Some newly approved IMTOs include Comet Trading, CSL Pay
Limited, Direkt Wire UK Limited, Fiem Group LLC DBA Ping Express, Lycamoney
financial services limited, and SimbaPay Limited.
