Africhange, a Nigerian remittance platform designed to make sending and receiving money across borders seamless, has made a significant stride in the Nigerian market with its subsidiary, Currenzo, securing an International Money Transfer Operator (IMTO) license from the Central Bank of Nigeria (CBN).
This milestone empowers Africhange to directly process remittances into Nigeria, eliminating intermediaries and offering faster, more affordable services to Nigerians both at home and abroad. By bypassing third-party involvement, Currenzo gains the authority to partner with local Nigerian banks, streamlining payment processes and significantly reducing costs.
The company has already forged partnerships with several banks in Nigeria and is actively seeking a reliable settlement partner to further enhance transaction security.
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Founded in 2020, Africhange has rapidly gained traction, boasting over 200,000 users worldwide and facilitating over 2 million transactions across 100+ countries The company leverages blockchain technology and advanced solutions to provide cost-effective cross-border transactions and remittance services, catering to the needs of immigrant communities, especially those of African descent.
Speaking on the recent IMTO License, David Ajala, CEO of Africhange, emphasized the company’s commitment to simplifying international money transfers.
In his words,
“As an immigrant-founded company, we understand first-hand that sending and receiving money across borders is a key part of daily life for our users, who are immigrants of African descent. Securing the IMTO license allows us to offer a faster, more affordable way for people to support their loved ones back home. For Africhange, it means we’re stepping into a new era where we can empower both individuals and businesses to make seamless, direct transactions in Nigeria. We’re excited about the doors this opens to bring greater impact to the lives of the communities we serve.”
Also commenting, Tega Gabriel, Head of Growth of Africhange said,
“This IMTO license acquired from the CBN brings incredible opportunities to form direct partnerships with Nigerian banks and other international money transfer operators. Connecting directly with local partners lets us speed up transactions and improve the remittance experience for our users sending money to Nigeria. As we scale, these partnerships will strengthen our reach across Nigeria and beyond, bringing us closer to our vision of accessible financial services for the global diaspora.”
Africhange has continued to remain committed to ensuring the seamless transfer of funds for Africans across borders. In July 2024 the company launched operations in the United Kingdom to help users send money across borders, particularly between Canada, Nigeria, and Australia. This further solidifies the remittance platform’s position as a dominant player in the global remittance industry.
Africhange’s securing of an IMTO License, comes after the Central Bank of Nigeria (CBN), in February 2024 increased the IMTOs license application fee from ?500,000 to ?10 million, while announcing a new minimum operating capital requirement for IMTOs of $1 million for foreign companies.
Fast forward to May 2024, the CBN approved 14 new IMTOs. This move aims to increase the sustained supply of foreign exchange in the official market, reduce historical volatility in Nigeria’s exchange rate, and promote greater competition among IMTOs. It is however worth noting that the increased license of IMTOs has positively impacted remittance inflow into Nigeria, leading to a record $585 million remittance in August 2024.
CBN Governor Yemi Cardoso, revealed that this figure represents a 130% increase from the corresponding period in 2023, surpassing the previous record of $553 million in July 2024. Cardoso emphasized that this success is a direct result of Apex Bank’s deliberate efforts to liberalize IMTO licensing, encourage more operators, and facilitate interactions with IMTOs to ensure effective operations.