The news:
- Flutterwave has launched Swap, a product to digitise access to FX for Nigerians.
- Swap was launched in partnership with Wema Bank and Kadavra.
- Flutterwave said Swap users will be issued cards that can be used for personal travel allowance or business travel allowance.
Swap, which was announced on September 4, 2023, in Ikoyi, Lagos, is backed by the Central Bank of Nigeria, (CBN) as the digital platform for Nigerians to have immediate access to foreign currency at competitive exchange rates.
The product will work with the aid of Wema and Kadavra — a bureau de change (BDC) — that will provide it with liquidity and foreign exchange.
Flutterwave's CEO, Olugbenga Agboola said, that Swap is the answer to the pain points and challenges individuals and businesses go through when trying to access FX.
Nigeria has been facing multiple FX problems in recent years. One of these is $10 billion in FX backlog, which the CBN plans to clear in two weeks. The backlog includes dollar requests from manufacturers and importers, business travel allowance, personal travel allowance, and medical bills abroad.
Interestingly, commercial banks control 75% of forex transactions in the country, and the launch of Flutterwave's Swap could be a way to reduce the dependence on banks for FX.
Flutterwave said Swap will also start rolling out cards that can be used by Nigerians who need quick access to personal travel allowance and business travel allowance. It said it plans to distribute more than 10 million cards to Nigerians starting in October this year.
