CBN Raises ITMO Application Fee To N10m, Restricts Banks, Fintechs From Providing Services

“Evidence of tax clearance and incorporation documents in Nigeria (for indigenous IMTOS) to include Memorandum and Articles of Association (Certified True Copy), of which the primary object clause shall indicate provision of money transfer services.” 

There is also an annual renewal at a fee of N10 million Naira, or any amount that the apex bank may specify from time to time; payable to the CBN through electronic transfer or bank draft on or before 31st January of the year.

It was also noted that the renewal of IMTO approval shall be completed within the first quarter of every year, adding that where an IMTO fails to avail its agent bank a copy of CBN renewal of its IMTO approval for that year within the first quarter of the year, the bank should cease any further transaction with the IMTO.

$1million share capital

The CBN also established a minimum operating capital requirement for International Money Transfer Operators (IMTOs) at $1 million for foreign entities and an equivalent amount for local IMTOs.

Previously, it was N2 billion for Nigerian companies and N50 million or its equivalent for foreign companies.

In its typical proactive and regulatory stance, the CBN underscores the critical importance of strict adherence to these guidelines. The apex bank sends a clear message that non-compliance will not be tolerated, with immediate sanctions set to be imposed on defaulters.

This firm approach underlines the CBN’s commitment to robust regulatory oversight, a cornerstone of its mandate.

This development coincides with an earlier circular from the CBN aimed at curbing what it perceives as rampant foreign currency speculation and hoarding among Nigerian banks. The nation’s financial watchdog has been growing concerned about these activities, which can significantly distort market dynamics.

At the heart of the CBN’s sweeping reform is an effort to instil stability in the foreign exchange market. The naira, Nigeria’s currency, has been under considerable pressure, experiencing a marked depreciation.