The Central Bank of Nigeria (CBN) has issued a stern warning to International Money Transfer Operators (IMTOs) operating within the country, cautioning them against selling foreign exchange (FX) at rates above the approved limits. The approved rates are based on the Nigerian Autonomous Foreign Exchange (NAFEX) rates, with a permissible deviation of plus or minus 2.5 percent.
The CBN’s warning comes in response to recent instances of violations and breaches by some IMTOs and outlines potential sanctions for further non-compliance. In a circular dated September 13, 2023, with reference number TED/FEM/PUB/PC/001/009, the apex bank cited various infractions that were identified during routine checks on the activities of money transfer operators.
The CBN expressed its concern that certain IMTOs had been operating in contravention of the established guidelines. These violations included the quoting of exchange rates that fell outside the permissible range, as well as engaging in other questionable practices, all of which were in violation of existing regulations. Such deviations from the established rules pose a risk to the stability of Nigeria’s financial markets and could potentially introduce unfair practices that disadvantage consumers.
The circular underlined the CBN’s commitment to enforcing its regulations and stated that any IMTO found in breach would face sanctions, which could include “suspension from engaging in international money transfer operations.”
