The Central Bank of Nigeria (CBN) has approved 10 additional International Money Transfer Operators (IMTOs) to boost diaspora remittances.
Nigeria’s foreign exchange (FX) earnings suffered a sharp decline following the impact of COVID-19.
This has forced the CBN to seek ways of improving the country’s FX earnings through diaspora remittances.
In March, the apex bank authorised a list of 47 IMTOs.
IMTOs accept cash for the purpose of transmitting to persons resident in Nigeria or another country. They also carry out cross-border transfer services for personal purposes such as money transfer services towards family maintenance and money transfer services for foreign tourists visiting Nigeria.
The CBN had announced that beneficiaries of diaspora remittances through the IMTOs will have such inflows in foreign currency (US dollar) through the designated bank of their choice.
In another major FX inflow drive, the CBN introduced a “Naira 4 Dollar Scheme” where recipients of diaspora remittances through CBN-licensed IMTOs are paid N5 for every $1 received as remittance inflow.