WorldRemit, an online remittance company, wants money transfers to Nigeria restored after operations of unlicensed International Money Transfer Operators (IMTOs) were stopped by Central Bank of Nigeria (CBN).
[quote font=”georgia” font_size=”22″ font_style=”italic” align=”left” arrow=”yes”]In a statement made available to Technology Times, WorldRemit called for the “urgent restoration” citing that the apex bank’s “draconian new rules” leave virtually all money transfer operators (MTOs) unable to provide services to Nigeria.[/quote]WorldRemit, an online remittance company wants Central Bank of Nigeria (CBN) to restore money transfers to Nigeria following clampdown on unlicensed International Money Transfer Operators (IMTOs) by the industry regulator.
In a statement made available to Technology Times, WorldRemit called for the “urgent restoration” citing that the apex bank’s “draconian new rules” leave virtually all money transfer operators (MTOs) unable to provide services to Nigeria.
WorldRemit claims it has been instructed by its local correspondents that transfers to Nigeria will no longer be processed and is accordingly, suspending services immediately.
Ismail Ahmed, WorldRemit founder and CEO, says “this move is arbitrary, inexplicable and hugely detrimental to the Nigerian diaspora who rely on hundreds of money transfer companies and banks, providing them with choice, convenience and competitive pricing.”
According to him, “even now, as we suspend our service, there is no clarity on why this sudden change has happened. If it is on the basis of new rules, there was no warning. If it is a re-interpretation of old rules, local correspondent networks and banks should have been forewarned.”
WorldRemit CEO says the CBN clampdown allegedly “reverses the progress made by the country when the Nigeria Central Bank banned Western Union’s exclusivity agreements that had created a near-monopolistic position in the international money transfer market. Western Union controlled 78% of the market share when CBN outlawed exclusivity agreements with local banks.”
WorldRemit claims that it sends more than 40,000 money transfers to Nigeria monthly.