The Central Bank of Nigeria (CBN) has accused International Money Transfer Operators (IMTOs) of cheating Nigerians in the payment of Diaspora remittances, adding that the new rule states that beneficiaries must be paid in foreign currency cash.
According to the apex bank, the IMTOs engaged in arbitrage arrangements on the naira-dollar exchange rate.
The CBN Governor, Mr. Godwin Emefiele, disclosed this at a press conference announcing the commencement of the new rule starting from tomorrow, Friday, 4th of December 2020.
“we analyzed data on IMTO inflows into the country over the past year, and through our investigations discovered that some IMTOs, rather than compete on improving transaction volumes and create more efficient ways for Nigerians in the Diaspora to remit funds, resorted to engaging in arbitrage arrangements on the naira-dollar exchange rate, which to a large extent resulted in a significant drop in flows into the country. It also encouraged the use of unsafe unofficial channels, which also supported diversion of remittance flows meant for Nigeria, thereby undermining our Foreign Exchange management framework.”
He added that:
“As a result, in an effort to boost remittance inflows and foster an environment that would enable faster, cheaper, and more convenient flow of remittances back to Nigeria, the Central Bank of Nigeria, on November 30, 2020, announced a new policy initiative, which would help to support these objectives. Please permit me to apprise you with the content of the new policy measures.”