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CBN Directs IMTOs To Pay In Naira

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According to recent developments, international transfers through International Money Transfers Operators (IMTOs) would be paid out in Naira which is in line with the recent circular issued by the Central Bank of Nigeria (CBN) aimed at solving the Forex (Fx) crisis facing the country. IMTOs are government-approved companies that receive cash to transmit to persons resident in any country. Some of the IMTOs affected include Western Union, MoneyGram, Ria, Sebdwave and other IMTOs approved by the CBN.

The CBN circular states, “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.”

A notice from Ecobank Nigeria to its customers reads in part, “The Circular issued by the CBN dated January 31, 2024, stipulates that ALL inbound money transfers to Nigeria will be paid ONLY in Naira through a bank account or in cash at the prevailing rate in the Nigeria Foreign Exchange Market.

“Furthermore, transfers exceeding the equivalent of $200 must be credited to the recipient’s bank account while cash payments for amounts below $200 wil require an acceptable means of identification.

“The acceptable means of identification is listed as follows: International Passport, Driver’s License, National Identity Card, Permanent Voters Card (PVC).”

Similarly, another IMTO, World Remit issued a notice as follows: “If you’re about to send money to Nigeria-this is important. The 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.

“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.”