Wise, formerly known as TransferWise, has resumed offering payouts in Naira to Nigerian bank accounts, following a recent change in remittance guidelines by the Central Bank of Nigeria.
The London-listed fintech, popular for its low-cost international money transfers, now allows UK customers to send Naira directly to beneficiaries in Nigeria.
The decision follows the CBN’s January 2024 guideline, which reversed its previous policy that required remittance inflows to be paid in US dollars only. Under the new rule, all remittance payments to Nigerian beneficiaries must now be disbursed in Naira, either to bank accounts or as cash for amounts below the $200 equivalent.
Wise has had an unstable history with the Nigerian market. After first enabling transfers to Nigeria in February 2015, the company halted services in May 2016, citing difficulties in offering a “true mid-market rate and transparent fee.” It resumed transfers in October 2017, only to stop again in 2020 and later in 2022.
The latest resumption marks the fourth time Wise has re-entered the Nigerian market, although as of now, transfers from USD to Naira remain unavailable. Customers can, however, send GBP to Naira, with EUR expected to follow soon. The USD corridor is likely to remain closed due to concerns over fraud.
Wise’s erratic presence in Nigeria is partly attributed to regulatory challenges and currency volatility. Despite being licensed as an Electronic Money Institution in the UK and across the EU, the company has yet to obtain an International Money Transfer Operator licence in Nigeria. This contrasts with its operations in other countries, where Wise has secured over 60 licences.
The company’s re-entry into the Nigerian market comes amid increasing competition from newer, well-funded fintechs like LemFi, Nala, and Flutterwave’s $end, which already holds an IMTO licence. Wise’s ability to maintain a stable presence in Nigeria may depend on the regulatory environment, customer demand, and the potential for sustainable growth in the corridor.
As Wise navigates these challenges, Nigerian consumers are likely to approach the company with caution, given its past disruptions in service.
