Alex Omenye
The recent guidelines introduced by the Central Bank of Nigeria regarding the operations of International Money Transfer Operators have led to uncertainty surrounding the status of certain fintechs, such as Flutterwave and Interswitch, that are licensed to offer international money transfer services.
The CBN’s new guidelines explicitly state that both banks and fintechs are prohibited from providing international money transfer services. Notably, no banks are currently licensed as IMTOs, but the guidelines remain silent on the fate of fintechs that are already licensed for these services.
Among the Nigerian fintechs licensed as IMTOs are Flutterwave, Interswitch, Paga, Xpress Payment Solutions, and Paycom. The CBN’s database indicates that a total of 62 companies, including foreign fintechs, are licensed as IMTOs in the country.
According to the revised guidelines, released officially on January 31, 2024, the CBN stipulates that “All banks are prohibited from operating International Money Transfer services but can act as agents. Also, Financial Technology Companies are not allowed to obtain approval for IMTO.”
While this implies that fintechs may no longer apply for IMTO licenses, the guidelines do not explicitly clarify whether fintechs that already possess IMTO licenses can continue to operate under the same authorization.
In Nigeria, IMTOs are fintechs authorized by the CBN to facilitate fund transfers from individuals or entities residing abroad to recipients within the country. As of July 2023, a total of 62 companies had been licensed by the CBN as IMTOs.
