International money transfer company WorldRemit has announced the addition of the naira as a payout option for customers sending money to Nigeria.
The announcement followed a directive by the Central Bank of Nigeria that International Money Transfer Operators, including Western Union and Monegram, add the naira as a payout option for customers receiving transfers. The other options are e-Naira and dollars.
The central bank said the payment rate must be the I&E rate on the day of transaction.
– Why this matters
Nigerian migrants worldwide sent over US$20 billion back to Nigeria last year, positioning the country as the eighth largest recipient of remittances globally.
These remittances make up more than 4% of Nigeria’s total economy, underscoring the crucial role they play in ensuring swift and effective fund delivery for individuals while also contributing to economic stability on a national scale.
The move comes after warnings by international organizations such as the International Monetary Fund against the dollarisation of the Nigerian economy, which increased black market money movement, destabilised the exchange rate, and made it difficult for beneficiaries to receive the best value of money sent to them.
– Learn more
Under a new leadership, the CBN has eased currency controls and pushed for the unification of the exchange rate of naira.
“With every innovation and feature we develop and invest in, customer needs are at the forefront of our minds,” said Mark Lenhard, CEO of Zepz., which owns WorldRemit.
“Enabling Naira currency for this expansive community is a necessary and obvious choice to ensure Nigerians around the world are able to access reliable, safe methods of money movement.”
To send money in Naira, WorldRemit users need to select ‘Nigeria NGN’ and then have the option to select Cash Pick-Up for the receive method.
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