CBN Orders International Money Transfers in Naira

Guidelines were posted on the Central Bank of Nigeria’s website to regulate international money transfer services in Nigeria.

The document which was posted on Wednesday, June 18, is to make sure that global standard is observed by money transfer services companies, agents, banks, and all those engaged in the provision of international money transfer services.

In the document, the CBN ordered that henceforth, all inbound international money transfers must be paid to beneficiaries in naira only and the transfer must be done through a bank account or mobile money wallet.

The central bank also mandated that all outbound international money transfers must, henceforth, be done in naira and pegged outbound money transfer at $2,000 per transaction.

The document read in part ‘’Allowable limit of the outbound money transfer shall be $2,000 or its equivalent per transaction, subject to periodic review by the CBN. All inbound money transfer to Nigeria shall only be disbursed to beneficiaries through bank accounts or mobile money wallets.

‘’Where the beneficiary does not have a bank account or mobile wallet, payments shall only be made upon the provision of a satisfactory reference from a current account holder in a bank, confirming that the beneficiary is the bona fide owner of the funds.’’

The guidelines also instructed that naira should be the currency given to a money transfer agent for an outbound transfer and that all outward payment transactions should be executed in a convertible currency agreed between the parties.

It added, ‘’Where a currency conversion service is offered before initiation of a payment transaction or at the point of payment, the money transfer services operator must disclose all charges, as well as the exchange rate to be used for converting the payment transaction.’’