Sylvia Duruson
The Central Bank of Nigeria (CBN) has granted Currenzo, a Nigerian subsidiary of the global financial institution Africhange, an International Money Transfer Operator (IMTO) licence. This move empowers Africhange to process remittances directly into Nigeria without intermediaries, offering faster services and better rates for Africans, especially Nigerians, at home and abroad.
The IMTO licence allows Currenzo to partner with local Nigerian banks, streamlining the payment process and making it more cost-effective. Africhange has already established partnerships with three Nigerian banks and is now seeking a reliable settlement partner in the country to ensure secure transaction processes.
Founded in 2020, Africhange has over 200,000 users worldwide and has completed 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, utilizing blockchain mechanics and other advanced technology to provide low-cost cross-border transactions and remittance solutions for immigrants and diaspora communities.
According to David Ajala, CEO of Africhange, the IMTO licence represents a significant milestone for the company. “As an immigrant-founded company, we understand first-hand that sending and receiving money across borders is a key part of daily life for our users, who are immigrants of African descent. Securing the IMTO licence allows us to offer a faster, more affordable way for people to support their loved ones back home.”
The expansion into the Nigerian market is part of Africhange’s broader strategy. In July 2024, the company expanded into the UK, building on the licences obtained in Canadian markets, with plans to further extend its service into the US and EU regions, solidifying its foothold in the remittance sector.
Meanwhile, the CBN has taken proactive steps to regulate and increase international money transfers, aiming to boost remittance flows and Nigeria’s foreign exchange reserves. In May 2024, the bank granted preliminary approval to 14 International Money Transfer Operators (IMTOs) after a 6.28% decline in foreign exchange remittance in Q1 2024. The CBN also raised the IMTO licence application fees, now set at ₦10 million (from ₦500,000) for local operators and $1 million for foreign firms.
In July 2024, the CBN issued a circular granting IMTOs access to naira liquidity through the official window, a strategic move aimed at boosting remittance from the diaspora. With remittance to Nigeria accounting for 38% of sub-Saharan Africa’s total flow in 2023, this new regulatory framework could increase diaspora investments and support Nigeria’s economic growth.
The granting of the IMTO licence to Currenzo, coupled with the CBN’s comprehensive regulatory measures, signifies a transformative era for cross-border transactions and remittance flows in Nigeria. This development empowers Africans at home and abroad, paving the way for greater financial inclusion, economic opportunities, and sustainable growth.
