Skip to main content

CBN Blocks Money Transfers Into The Country From Most Operators

London. August 2nd, 2016: WorldRemit, a leading online remittance provider, is calling for the urgent restoration of money transfers to Nigeria as draconian new rules leave virtually all money transfer operators (MTOs) unable to provide services to the West African country.

Only three companies – Western Union, MoneyGram and Ria - will be able to continue operations, following an extreme and unexpected move by the Central Bank of Nigeria.

WorldRemit, in common with all other international MTOs, has been instructed by its local correspondents that transfers to Nigeria will no longer be processed and is, accordingly, suspending services immediately.

WorldRemit founder and CEO, Ismail Ahmed said: “This move is arbitrary, inexplicable and hugely detrimental to the Nigerian diaspora who rely on hundreds of money transfer companies and banks, providing them with choice, convenience and competitive pricing.

“Even now, as we suspend our service, there is no clarity on why this sudden change has happened. If it is on the basis of new rules, there was no warning. If it is a re-interpretation of old rules, local correspondent networks and banks should have been forewarned.

“This reverses the progress made by the country when the Nigeria Central Bank banned Western Union’s exclusivity agreements that had created a near-monopolistic position in the international money transfer market. Western Union controlled 78% of the market share when CBN outlawed exclusivity agreements with local banks.”

Until now, money transfer operators such as WorldRemit operated via partnerships with licensed local correspondents in Nigeria, enabling transfer of funds to local bank accounts – providing a more efficient service than the SWIFT infrastructure.

WorldRemit has also raised concerns about a 2015 memorandum from the Central Bank of Nigeria, setting out minimum requirements for companies offering international Mobile Money transfer services to Nigeria.

The guidelines specify that any company offering Mobile Money transfers must have minimum net assets of $1bn and have been operating for more than 10 years.

WorldRemit is the world leader in transfers to Mobile Money accounts and had been planning to launch remittances to Mobile Money services in Nigeria.

“It looks like all systems in Nigeria are currently geared against encouraging new entrants and competition in the mobile remittance markets. That is worrying in the extreme,” said Ismail Ahmed.

WorldRemit sends more than 40,000 money transfers to Nigeria every month.

Nigeria received more than $20bn in remittances annually from migrants around the world.



About WorldRemit

WorldRemit is a leading provider of international money transfers through its mobile apps and web service.

In addition to cash pickup and bank deposit options, WorldRemit offers instant transfers to more than 30 Mobile Money services, with more than 100,000 transfers per month being received directly on mobile phones.

WorldRemit received a $40m Series A investment from Accel Partners in 2014, and a $100m Series B led by Technology Crossover Ventures (TCV) in 2015.

In November 2015, WorldRemit was named the UK's fastest growing technology company in the Deloitte UK Technology Fast 50 awards.

WorldRemit’s global headquarters are in London, UK with regional offices in the United States, Canada, Japan, Australia and New Zealand.

https://www.worldremit.com/en/news/worldremit-calls-for-urgent-restoration-of-money-transfers-to-nigeria
Post a Comment

Popular posts from this blog

U.S. Military Helicopter Crashes In Iraq On Thursday, Killing 7 People On Board

One of the U.S. military helicopter in Iraq has crashed after hitting a power line in Iraq's western Anbar province, killing all seven personnel aboard.

According to a statement from Pentagon this morning, the officials said the crash of the HH-60 Pave Hawk helicopter occurred Thursday afternoon near the town of Qaim.

"All personnel aboard were killed in the crash," Brig. Gen. Jonathan P. Braga, director of operations, Combined Joint Task Force - Operation Inherent Resolve, said in a statement.

"This tragedy reminds us of the risks our men and women face every day in service of our nations," he said. "We are thinking of the loved ones of these service members today."

The statement further said;

Wife Of Donald Trump Junior Files For Divorce

(Reuters) - The wife of Donald Trump Jr., the eldest son of U.S. President Donald Trump, has filed for divorce in New York, according to court records.

Vanessa Trump, a former model and actress, and Trump Jr. said in a joint statement on Thursday: "After 12 years of marriage, we have decided to go our separate ways."

The statement was provided by the Trump Organization, the president's business empire, which his son helps manage.


Further details were not immediately available on the uncontested divorce filing by Vanessa Trump in a New York state court. She and Trump Jr. have "enormous respect" for each other, according to the joint statement, which also asked for privacy.

Prison Officers Secretly Move Charles Okah To Borno Prisons After Life Sentence

Charles Okah, the brother of the leader of the Movement for the Emancipation of the Niger Delta (MEND), who was given a life sentence for terrorism, has been secretly moved from Kuje Prisons, Abuja, to one of the prison facilities in Borno State, THISDAY has learnt.

Worried about his seeming familiarity with the prison environment and the officers at the Kuje Prisons, the authorities of the Nigerian Prison Service (NPS) last Tuesday transferred him quietly.