- The Central Bank of Nigeria (CBN) has granted Currenzo, a Nigerian subsidiary of global financial institution Africhange, an International Money Transfer Operator (IMTO) licence.
- This means Africhange can now process remittances directly into Nigeria without intermediaries, offering faster services and better rates for Africans, especially Nigerians, at home and abroad.
- With the removal of third-party involvement, this licence also gives Currenzo the right to partner with local Nigerian banks to dispense its services for streamlined payment processes and cost-effectiveness.
Africhange, through Currenzo, has already partnered with three Nigerian banks but is now looking for a reliable settlement partner in Nigeria to ensure secure transaction processes.
Founded in 2020, the parent company has over 200,000 users worldwide and has completed over 2 million transactions across over 100 countries, including Nigeria, Canada, Australia, and the United Kingdom, offering a wide range of currencies for international transfers.
Africhange uses blockchain mechanics and other advanced technology to provide low-cost cross-border transactions and remittance solutions for immigrants and support diaspora communities, particularly those of African descent.
Per David Ajala, CEO of Africhange, “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.
“For Africhange, it means we’re stepping into a new era where we can empower both individuals and businesses to make seamless, direct transactions in Nigeria. We’re excited about the doors this opens to bring greater impact to the lives of the communities we serve.”
In July 2024, Africhange expanded into the UK, building on the licences obtained in Canadian markets with plans to expand its service into the US and EU regions, solidifying its foothold in the remittance sector.
Meanwhile, the CBN has taken bold steps to regulate and increase international money transfers to boost remittance flows and Nigeria's foreign exchange reserves.
In May 2024, CBN granted preliminary approval to 14 International Money Transfer Operators (IMTOs) after a 6.28% decline in foreign exchange remittance in Q1 2024. The bank also raised the IMTO licence application fees, now set at ₦10 million (from ₦500,000) for local operators and $1 million for foreign firms.
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In July 2024, 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.
