Wise resumes naira transfers to Nigeria for the fourth time

• Published On: 15 September 2024 at 19:30

Wise, formerly known as TransferWise, has resumed offering Naira payouts to Nigerian bank accounts following the Central Bank of Nigeria's recent change in remittance guidelines.

The London-listed fintech, known for its low-cost international money transfers, now lets UK customers send Naira directly to beneficiaries in Nigeria.

The decision follows the CBN's January 2024 guideline, which reversed its previous policy of requiring remittance inflows to be paid only in US dollars. Under the new rule, all remittance payments to Nigerian beneficiaries must be made in Naira, either to bank accounts or in cash for amounts less than $200.

Wise has had a turbulent relationship with the Nigerian market. After initially enabling transfers to Nigeria in February 2015, the company suspended services in May 2016, citing difficulties in providing a "true mid-market rate and transparent fee." It resumed transfers in October 2017, but then stopped again in 2020 and 2022.

The latest resumption marks Wise's fourth return to the Nigerian market, though transfers from USD to Naira are currently unavailable. Customers can, however, transfer GBP to Naira, with EUR expected to follow shortly. The USD corridor is likely to remain closed due to concerns about fraud.

Wise's erratic presence in Nigeria can be attributed to regulatory challenges and currency volatility. Despite being licensed as an Electronic Money Institution in the United Kingdom and throughout the EU, the company has yet to obtain an International Money Transfer Operator licence in Nigeria. This contrasts with its operations in other countries, where Wise has obtained over 60 licenses.

The company's re-entry into the Nigerian market coincides with increased competition from newer, well-funded fintechs such as LemFi, Nala, and Flutterwave's $end, which already has an IMTO licence. Wise's ability to maintain a stable presence in Nigeria may be influenced by the regulatory environment, customer demand, and the corridor's potential for long-term growth.

As Wise navigates these challenges, Nigerian consumers are likely to approach the company with caution due to previous service disruptions.