Naira will now be the currency for international transfers facilitated by international money transfer operators (IMTOs), following recent directives from the Central Bank of Nigeria (CBN).
A notice from Ecobank Nigeria highlights the impact of these directives on several IMTOs, including Western Union, MoneyGram, Rapidtransfer, Ria, and others approved by the CBN.
The notice states:
“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.”
The new directive from the CBN signifies a significant shift in how international money transfers will be processed in Nigeria. Previously, transfers could be received in foreign currency, but now they will be converted to Naira at the prevailing exchange rate.
This change is expected to have implications for individuals and businesses involved in international transactions, as they will need to adjust to the new currency conversion process. It also reflects the CBN’s efforts to manage foreign exchange reserves and stabilize the Naira amidst economic challenges.
The move has sparked discussions among financial experts and stakeholders, with some expressing concerns about the impact on exchange rates and the ease of conducting international transactions. Critics argue that the mandatory conversion to Naira could lead to additional costs for recipients and potentially affect the competitiveness of Nigerian businesses in the global market.
However, supporters of the directive view it as a necessary step to strengthen the Naira and ensure better control over foreign exchange transactions. They believe that by centralizing the conversion process, the CBN can better regulate the flow of foreign currency into the country and address issues of currency speculation and market volatility.
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