IMTOs Stop Payment Of Forex Remittances, Pay Only Naira Equivalent

Following the directive of the Central Bank of Nigeria (CBN) barring international money transfer operators (IMTOs) from paying Nigerians in foreing currencies, Nigerians abroad will no longer be able to send dollars or any foreing currency into bank accounts in the country.

IMTOs had removed the options of sending dollars or other foreing currency to Nigeira on their websites and mobile application in compliance with the CBN directive. Consequently, Nigerians abroad are only allowed to transfer the naira equivalent amount of the foreing currency.

IMTOs are removing the option of sending dollars to bank accounts in the country and are exchanging at the rate of N1,450 to a dollar.

WorldRemit, in a notice to customers said: “we can no longer support transfers in USD – only in Naira. 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 transfer to be paid out in USD in Nigeria.”

Similarly, Sendwave in a notice to customers said: “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 CBN had earlier instructed banks to begin paying Dollars and other foreign currency payouts from abroad in Naira to boost forex supply.

“All inbound money transfers to Nigeria shall be paid to beneficiaries in Naira through a bank account, or cash. Proceeds of IMTO more than the equivalent of $200 shall be paid through an account.

“Cash payments shall be made upon the provision of a satisfactory/acceptable means of identification. Where the beneficiary does not have an account with the IMTO agent bank, the agent bank shall credit the beneficiary account in another bank.

“The exchange rate for the Naira payment shall be at the prevailing rate in the Nigerian Foreign Exchange Market,” the CBN guideline reads in part.