The Central Bank of Nigeria (CBN) has recently granted Currenzo, a Nigerian subsidiary of Africhange, an International Money Transfer Operator (IMTO) licence. This development is a significant milestone for Africhange, as it now has the capability to process remittances directly into Nigeria without the need for intermediaries. This will result in faster services and better rates for Africans, particularly Nigerians, both at home and abroad.
By eliminating third-party involvement, Currenzo now has the opportunity to collaborate with local Nigerian banks to offer its services, leading to streamlined payment processes and cost-effectiveness. While Africhange has already partnered with three Nigerian banks, it is actively seeking a secure settlement partner in Nigeria to ensure the smooth execution of transactions.
Established in 2020, Africhange has garnered a global user base of over 200,000 individuals and has facilitated more than 2 million transactions across 100 countries, including Nigeria, Canada, Australia, and the United Kingdom. The platform supports a wide range of currencies for international transfers and leverages blockchain technology and other advanced mechanisms to provide low-cost cross-border transactions and remittance solutions for immigrants, particularly those of African descent.
David Ajala, CEO of Africhange, emphasized the importance of the IMTO licence, stating, “Securing the IMTO licence allows us to offer a faster, more affordable way for people to support their loved ones back home. For Africhange, it means we’re stepping into a new era where we can empower both individuals and businesses to make seamless, direct transactions in Nigeria.”
In a bid to expand its operations, Africhange ventured into the UK market in July 2024, following its success in the Canadian markets. The company is also planning to extend its services to the US and EU regions, solidifying its presence in the remittance sector.
Meanwhile, the CBN has been proactive in regulating and enhancing international money transfers to bolster remittance flows and Nigeria’s foreign exchange reserves. In response to a 6.28% decline in foreign exchange remittances in Q1 2024, the CBN granted preliminary approval to 14 IMTOs and increased the IMTO licence application fees significantly.
Furthermore, in July 2024, the CBN issued a circular granting IMTOs access to naira liquidity through the official window, with the aim of boosting remittances from the diaspora. Given that remittances to Nigeria accounted for 38% of sub-Saharan Africa’s total flow in 2023, this new regulatory framework is expected to stimulate diaspora investments and support the country’s economic growth.
