Wise Resumes Naira Payouts to Nigeria, Adapting to CBN’s New Guidelines
Wise, the UK-based fintech recognized for its affordable international money transfers, has resumed naira payouts to Nigeria after suspending remittances due to changes in Central Bank of Nigeria (CBN) regulations.
In January 2024, the CBN introduced a new directive reversing a previous policy that mandated remittances be paid exclusively in US dollars. The updated guidelines now require all remittances to be paid in naira for transactions under the $200 equivalent.
In response, Wise has discontinued its dollar transfers to Nigeria and complied with the new naira payout structure, allowing its UK customers to send money directly to Nigerian bank accounts. This isn’t Wise’s first foray into the Nigerian market. The company has had a turbulent history, repeatedly launching and suspending naira services since 2015 due to regulatory issues and difficulties maintaining mid-market exchange rates.
Wise initially halted naira transfers in 2016, resumed in 2017, but paused again in 2020 when the CBN required all remittances to be paid in US dollars. Wise cited challenges in meeting these requirements, resulting in several interruptions in service. The fintech once again ceased naira payouts in 2022, struggling with reliable payout providers and regulatory hurdles.
However, Wise has now returned in 2024, fully aligned with CBN’s new regulations. Despite past obstacles, the company’s re-entry into the Nigerian market signals a renewed commitment to providing stable and transparent remittance services, supporting cross-border transactions in local currency.
