The Central Bank of Nigeria (CBN) issued a directive to International Money Transfer Operators (IMTOs) yesterday, stating that they should convert dollars received through Diaspora remittances into naira and distribute them to local recipients. A circular from CBN's Director of Trade and Exchange Department, O.S. Nnaji, provided a list of 62 approved IMTOs authorized to implement this directive, which was addressed to banks, IMTOs, and the general public.
The approved IMTOs on the list include Western Union, World Remit Limited, CashPot Limited, eTransact International Limited, Leadremit Limited, Flutterwave Technology Solutions Limited, and Interswitch Limited. Additional companies on the list are Belyfted Limited, Caperemit UK Limited, Chime In (Sendwave), Colony Capital Limited, Comet Trading Nigeria Limited, CSL Pay Limited, CP Express Limited, and several others.
The circular titled "Payout Option in Naira Receipt of Proceeds of Diaspora Remittances" states that the Central Bank of Nigeria (CBN) has introduced Naira as a payout option for receiving proceeds from international money transfers. This announcement is in reference to a previous circular dated November 30, 2020. According to the circular, all individuals who receive diaspora remittances through the CBN-approved IMTOs listed in the attachment will now have the choice to receive their payments in Naira, in addition to USD and eNaira as payout options.
"To clarify, it is mandated that International Money Transfer Operators (IMTOs) use the Investors & Exporters' Window rate as the reference rate for paying out the proceeds on the day of the transaction. This regulation is effective immediately, and strict adherence is expected. Please take note of this requirement and ensure compliance."