The Central Bank of Nigeria (CBN) has mandated International Money Transfer Operators (IMTOs) to pay all Nigerian recipients of foreign currencies, especially the United States Dollar (USD), in Naira.

In revised guidelines for the operations of IMTOs released by CBN on January 31 and signed by Hassan Mahmud, the apex bank’s director of trade and exchange department, CBN stated that IMTOs can only pay recipients of inbound transactions in Naira.

The guidelines further stated that the exchange rate for such transactions will be determined by the current exchange rate.

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“All in-bound money transfers to Nigeria shall be paid to beneficiaries in Naira through a bank account or cash,” said CBN.

“The exchange rate shall be at the prevailing rate in the Nigerian Foreign Exchange Market.”

The apex bank, however, mandated IMTOs to disclose all charges and exchange rates to be used for converting payment transactions.

FIJ found from a post shared by General Oluchi, an X user, that Nigerian fintechs are starting to implement the policy. Oluchi had shared WorldRemit, a payment platform’s statement that USD could no longer be paid out in Nigeria.

Osetigo, oh yes!
Where you dey, oh yes!
Tikasia tikasia kuwasia! pic.twitter.com/IMqLiqdeVn

— A Field Marshal of the Han Dynasty⚡️ (@General_Oluchi) February 8, 2024

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Another X user also confirmed the policy, stating that she could no longer make transfers in USD to Nigeria.

I just checked my own. Haba, this country is evil ooo. What is this? pic.twitter.com/E1E70rxMgO

— Daughter of Zik and Ojukwu (@blackgoldIfy) February 8, 2024

The CBN policy is coming amid an increasing devaluation of Naira and the need to clear forex backlogs accrued overtime.