Recently, the CBN (Central Bank of Nigeria) stopped numerous companies of global money transfer. The affected companies won’t be allowed any more to operate in Nigeria where every year 21 billion dollar are sent to or from Nigeria in the whole world. Though, MoneyGram, Western Union and Ria are still able to continue operating in Nigeria.
WorldRemit, a money transfer company which is now no longer allowed to do business in Nigeria, indicated having more than 40.000 money transfers to Nigeria per month and get back over 20 billion dollar from people of the nigerian diaspora. Investigators found out that the majority of the affected companies was not allowed to do business in Nigeria and has ignored important rules. According to an industry source they were holding back dollar inflows which was meant to strenghten foreign currency liquidity in Nigeria. Therefore, they paid their partner in the local currency naira and not in dollar.
“The operators need to do their business with integrity and international best practices. A situation whereby they withhold the dollar supplies and pay Nigerians in local currency can no longer be accepted,” the source said.
In the past, companies like WorldRemit worked together with local partners in Nigeria to enable the money transfers to bank accounts. They have created a more effective service than it did the SWIFT infrastructure. WorldRemit did also mention the memorandum of the CBN of 2015 in which they fixed minimum requirements to fulfill for those who want to do business with money transfers in Nigeria.
The rules indicate that firms who offer mobile money transfers need to have a minimum of net assets (1 billion dollar) and an operating experience of 10 years or more. WorldRemit who is the world leader in mobile money transfers wanted to launch its service also in Nigeria.