The Central Bank of Nigeria (CBN) has recently granted Currenzo, a Nigerian subsidiary of the global financial institution Africhange, an International Money Transfer Operator (IMTO) licence. This development marks a significant milestone for Africhange, as it now has the authority to process remittances directly into Nigeria without the need for intermediaries. This move is expected to result in faster services and better rates for Africans, particularly Nigerians, both at home and abroad.
With the IMTO licence, Currenzo is now able to collaborate with local Nigerian banks, simplifying the payment process and making it more cost-effective. Africhange has already established partnerships with three Nigerian banks and is currently in search of a reliable settlement partner in the country to ensure secure transaction processes.
Founded in 2020, Africhange boasts a user base of over 200,000 individuals worldwide and has facilitated more than 2 million transactions across over 100 countries, including Nigeria, Canada, Australia, and the United Kingdom. The company offers a wide range of currencies for international transfers, leveraging blockchain technology and other advanced mechanisms to provide low-cost cross-border transactions and remittance solutions for immigrants and diaspora communities.
David Ajala, the CEO of Africhange, expressed his excitement about the IMTO licence, emphasizing that it represents a significant step forward for the company. He highlighted the importance of providing a faster and more affordable way for users to support their loved ones back home, particularly for immigrants of African descent.
The expansion into the Nigerian market is part of Africhange’s broader strategy, following its successful entry into the UK market in July 2024 and its plans to further extend its services into the US and EU regions. This expansion solidifies Africhange’s position in the remittance sector and underscores its commitment to serving the global diaspora community.
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 decline in foreign exchange remittances in Q1 2024, the CBN granted preliminary approval to 14 IMTOs and raised the IMTO licence application fees to ₦10 million for local operators and $1 million for foreign firms.
In a strategic move to boost remittances from the diaspora, the CBN issued a circular in July 2024 granting IMTOs access to naira liquidity through the official window. This new regulatory framework is expected to increase diaspora investments and support Nigeria’s economic growth, as remittances to Nigeria accounted for 38% of sub-Saharan Africa’s total flow in 2023.
The granting of the IMTO licence to Currenzo, along with the CBN’s comprehensive regulatory measures, signifies a transformative era for cross-border transactions and remittance flows in Nigeria. This development is poised to empower Africans at home and abroad, fostering greater financial inclusion, economic opportunities, and sustainable growth in the region.
