To our community,
You may have noticed in the last few days that several money transfer providers including MoneyGram, WorldRemit and TransferWise have changed their payout currency to Nigeria from NGN to US Dollars.
We wanted to let you in on why providers are making this change and how it will affect you when sending money to Nigeria.
Nigeria Remittance Inflow to be paid out in US Dollars
On the 30th of November, 2020, the Central Bank of Nigeria instructed all international money transfer operators to only payout in US Dollar. CBN Annoucement
Yes, you read that right. Remittance flow into Nigeria will only be paid out in US Dollar ($)
We are unsure if this is a temporary measure or a new norm. But this is why reputable providers are changing their payout currency to Nigeria from NGN to USD.
What does this mean for me you as a customer sending money to Nigeria?
Firstly, you can still transfer money to Nigeria.
However, the transfer will be paid out in USD. You will also notice that established money transfer providers no longer give you the option to select Nigerian Naira (NGN). Instead, they automatically convert the receiving amount to USD.
For example, WorldRemit now automatically show you USD when you select Nigeria on their list of receiving countries.
Do the recipient in Nigeria need a USD account to receive money?
In short, no.
Recipients can pick up cash in Nigeria if the remittance company offers this as an option.
Some providers such as WorldRemit and MoneyGram allow recipients to pickup USD cash in Nigeria. And others allow you to send USD directly into a domiciliary account.
But. There are still providers who allow sending in Naira (NGN)
Yes. That is true.
But they are not complying with CBN rule and you face the risk of losing your money.
Can I still use Zazuu to find the best rates to Nigeria?
Now that you can only send USD to Nigeria, it is fair to think you no longer need to shop around, especially if you are sending from the United States.
But, that’s not the case.
We compared a handful of providers and noticed they all offer a slightly different “Nigeria USD” rate and transfer fees. So there is still a need to shop around and make sure you are getting the best deal.
How is Zazuu responding to the CBN instruction?
We are working on a new update that reflects the new CBN instruction. Going forward, we will only show providers who comply with this rule.
Our number one priority at Zazuu is our community. We want to make sure you send money back home with peace of mind and get the best possible deal on all your transfers.
Do follow us on @ZazuuHQ for update.