Global digital remittance service, WorldRemit, one of several international money transfer companies prevented from operating under a directive issued by the Central Bank of Nigeria (CBN) in early August, has welcomed a decision by CBN to now approve operators.
At the beginning of August 2016, CBN issued a directive on remittance operations in a bid to reduce the number of unlicensed firms.
The directive effectively suspended the operations of IMTOs, leaving the Nigerian diaspora to rely on just three approved companies, including Western Union, MoneyGram and Ria, for remittance services.
The CBN stated "... all licensed International Money Transfer Operators, in line with the CBN Circular on the sale of foreign currency proceeds of July 22, 2016, are required to remit foreign currency to their respective agent banks in Nigeria for disbursement in Naira to the beneficiaries..."
The body warned locals of ''some unlicensed International Money Transfer Operators (IMTOs) in Nigeria" and its unwillingness to condone any attempt to undermine the country's foreign exchange regime.
A statement issued by WorldRemit confirms the receipt of a letter of approval from CBN enabling its services to Nigeria be resumed.
Ismail Ahmed, founder and CEO of WorldRemit, comments: "We launched our service to Nigeria in 2011 when we pioneered instant deposits to all bank accounts. Our service provided the Nigerian diaspora with an easy, secure and low cost way to send money home as well as bringing much-needed foreign exchange into the local economy. We're delighted that we can now resume operations."
"We commend the Central Bank of Nigeria for reaffirming the country's commitment to building an enabling environment and level-playing field for international money transfer services to Nigeria. Increased competition will help to bring the estimated 50% of remittances to Nigeria that currently go through unregulated, informal networks into formal networks channelled through licensed IMTOs.
"We're grateful to the many Nigerians both at home and in the diaspora that supported our call for money transfers to be restored. A competitive remittance market provides Nigerians with greater convenience and better pricing."
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