Apex bank blocks all transfers into Nigeria except Western Union, MoneyGram, Ria

The Central Bank of Nigeria (CBN) recently passed a regulation that blocks almost all Money Transfer Operators (MTOs) from conducting transfers into the country.

The apex bank has granted only three MTOs - Western Union, MoneyGram and Ria - authorization to make transfers. Those are the MTOs who have a net asset value of $1 billion and have been operational for at least 10 years, per the CBNs requirements.

One of the other MTOs, WorldRemit, has already released a statement yesterday calling for the CBN to rethink their position on this.

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CEO and founder of WorldRemit, Ismail Ahmed, "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."

There is no doubt that this will adversely affect Nigeria's remittance stance. According to recent data, Nigeria receives over $20 billion in remittance from migrants across the world yearly.

It will be interesting to see how this plays out in Nigeria's battle for stability in the forex market.