The Central Bank of Nigeria (CBN) has implemented a substantial increase in the application fee for international money transfer operators (IMTO), raising it from N500,000 to N10 million, according to the revised guidelines released on January 31, 2024. This adjustment reflects a significant surge of approximately 1,900% over the span of 10 years.
In addition to the fee hike, the updated guidelines also prohibit banks and financial technology companies (fintechs) from providing international money transfer services. The new directive outlines that banks can act as agents but are prohibited from directly operating such services. Furthermore, fintech companies are not permitted to seek approval for IMTO operations.
The revised guidelines extend the prohibition of offering international money transfer services to fintechs, which were not included in the earlier guidelines issued in 2014. The Central Bank’s move reflects an expansion of regulatory oversight in the sector.
Regarding the increased application fee, the document specifies that any IMTO seeking to operate in Nigeria must submit its application to the Director of the Trade and Exchange Department along with various required documents. The non-refundable application fee of N10 million or any other amount specified by the CBN must be paid through electronic transfer or bank draft.
The guidelines also stipulate an annual renewal requirement, with a renewal fee of N10 million or an amount specified by the CBN, payable through electronic transfer or bank draft by January 31 of each year. This indicates a more stringent regulatory framework for IMTOs operating in Nigeria, emphasizing financial compliance and transparency.
