By Adedapo Adesanya
With Nigeria being one of the hotspots for remittances, many businesses are pivoting to serve this need with Africhange, a leading cross-border remittance service provider, joining the fray.
The company on Thursday announced that its Nigerian subsidiary, Currenzo, has secured an International Money Transfer Operator (IMTO) licence from the Central Bank of Nigeria (CBN).
Nigeria remains one of the largest recipients of remittances in Sub-Saharan Africa. According to the World Bank’s Migration and Development Brief, in 2023 alone, remittance to Nigeria accounted for 38 per cent of the region’s $54 billion total.
Recall that to tackle the foreign exchange decline, the CBN restructured the IMTO license landscape by setting a N10 million fee for local operators and $1 million for foreign companies. Companies pivoting into this know that remittances are an important business opportunities as these funds are essential for education, healthcare, and daily living, so making accessible and cost-effective remittance solutions vital.
With its new license, Africhange, in a statement, noted that it will significantly improve the facilitating of inward remittances for immigrants and diaspora communities sending money to Nigeria.
The licence acquisition follows Africhange’s recent expansion to the United Kingdom and builds on the licences already acquired in its Canadian and UK markets, intending to strengthen its service offerings.
Founded in 2020, Africhange by leveraging advanced technology has minimised the cost and complexity of cross-border transactions, enhancing the immigrant experience and supporting communities, especially those of African descent.
The new IMTO licence allows Africhange to manage inward remittances directly into Nigeria without relying on intermediaries. By removing third-party involvement, this capability enables partnerships with local banks, streamlining payment processes and lowering costs for customers.
Speaking on the development, Mr David Ajala, CEO of Africhange, stated: “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 licence 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.”
Adding his input, Mr Tega Gabriel, Head of Growth of Africhange, added: “This IMTO licence 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.”
Looking ahead, the money transfer platform is preparing to launch operations in the US and EU markets, further scaling its footprint in the remittance sector and reinforcing its position as a leader in cross-border financial services.
The company also wants to raise funds in the coming year to fuel rapid expansion and bring its impactful solutions to even more users worldwide.