In the pursuit to liberalize the Foreign Exchange Market, ensure liquidity and ease the accessibility of foreign exchange to the masses, The Central Bank of Nigeria, CBN has licensed some FINTECH platforms like PayPal, Flutterwave, Naira Gram, Pagatech, Zintego, Interswitch and many more as International Money Transfer Operators (IMTOs) in Nigeria. (Full List)
The International Remittance market has marked a significant rise with major contribution to investment and commerce in Nigeria. Nigeria’s diaspora annual remittance was reportedly about $21 Billion. Prior to the liberalization of the IMTOs, the international money transfer market in Nigeria before 2008 was hugely dominated by MoneyGram and Western Union. These entities took advantage of exclusivity agreements that granted them a near-monopolistic hold over the market.
The demurral of this liberalization has posed as threat to many Nigerians rendering services on international platforms as there’s usually one hitch or so with receiving payments. Some have to go through lengthy processes like changing their IP addresses before they successfully receive payment. YouTubers and Online Freelancers have frustratingly bemoaned the inability of Nigerian Banks to integrate an easily accessible global payment system.
However, Paystack, a FINTECH company on the rise is yet to get an IMTO license.