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Money transfer operators in Nigeria: Regulation and licensing options

Many people have had their 2020 plans ruined by COVID-19, but the cross-border remittance opportunity in Nigeria is even more enticing right now.

The World Bank expects cross-border remittances to drop dramatically in 2020, but many African players are experiencing a sharp increase in digital person-to-person flows as cash is becoming stigmatised. This may turn out to be an opportunity for pulling in the 50% of Nigerians who currently send cash informally.

This note outlines the market opportunity in Nigeria, the regulation to consider as well as the licensing options and requirements and the pros and cons of going solo or partnering up with a bank.

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