DIASPORA REMITTANCES: CARTEL BEGS CBN TO ALLOW THEM PAY NAIRA NOT DOLLARS

0
94

Members of the Association of Licensed Mobile Payments Operators (ALMPO) is appealing to the CBN to change its policy directive on payment of diaspora remittances.

parallel market, Covid-19: N3.5 trillion disbursed as stimulus package for the Nigerian economy, CBN Vs NESG: Waving the white flag for the benefit of Nigerians, Exchange Rate Unification: CBN devalues official rate to N380/$1, Nigerian banks have written off N1.9 trillion impaired loans in past 4 years, CBN sandbox operations, Stirling Trust Company Limited, Key highlights of the October 2020 Business Expectations Survey Report, A Total of N3.5 trillion was disbursed in the wake of the COVID-19 pandemic, in addition to several other interventions to reflate the economy - CBN, BOFIA 2020: Steps forward or backwards for Nigerian banks, Total credit to the economy rose to N19.54trillion – CBN Governor

Mobile money Cartel, the Association of Licensed Mobile Payments Operators (ALMPO) is appealing to the Central Bank of Nigeria (CBN) to change its policy directive on payment of diaspora remittances.

The members want the central bank to reverse the policy that requires banks to make payments in dollars allowing them to pay in naira, claiming that it limits the number of Nigerians that can access the funds. This is according to a report by the News Agency of Nigeria (NAN) which cited comments from the Chairman of ALMPO, Mr. Jay Alabrabra.

“The CBN’s decision to restrict international remittances to USD payouts only is the overarching concern of everyone. It certainly limits the number of Nigerian citizens that can conveniently access funds sent from the diaspora. I sincerely hope that CBN reconsiders its position on this, and re-allow Naira payments in cash or into accounts or wallets,” Jay Alabrabra.

Mr. Alabrabra also disclosed that the CBN’s instruction was a “serious worry” for their business and suggested that the apex bank’s decision may have been a temporary measure.

Alabrabra also said that the apex bank’s decision, which had caused serious worry for Mobile Money Operators, had challenged the Industry association to further engage with CBN on the issues.

Backstory

On December 16th, the Central Bank of Nigeria (CBN) issued additional guidelines for diaspora remittances in the country citing infractions of its previous circular.

It blamed mobile payment operators for flouting its directives for operators to pay remittances in dollars accusing them of paying in naira.

According to the apex bank, despite spelling out procedures “regrettably, a few operators continue to pay remittances in local currency contrary to the regulatory directive”  and then issued instructions amongst which includes the following;

  • All MMOs are required to immediately disable wallets from receipt of funds from IMTOs.
  • Payment service providers are directed to cease integrating their systems with IMTOs going forward and must prevent the comingling of remittances with other legitimate transactions.

On November 30th the CBN stated that beneficiaries of Diaspora Remittances through International Money Transfer Operators (IMTOs) shall henceforth receive such inflows in foreign currency (US Dollars) through the designated bank of their choice.

Why are they pleading

The plea by money transfer operators suggests the decision by the CBN to cut them off may have severely dented a major source of revenue for its members.

  • Apart from cutting them instructing them from not paying in naira, the decision shuts out any potential margin they may have made from forex exchanges.
  • Thus restricting their revenue to only commissions on transfers. They have also been told to disable wallets and directed to cease integrating their systems with IMTOs.

LEAVE A REPLY

Please enter your comment!
Please enter your name here