CBN grants IMTO licence to NALA, as firm targets cheaper, instant diaspora remittances

The Central Bank of Nigeria (CBN) has granted an International Money Transfer Operator (IMTO) licence to global payments company NALA, paving the way for faster, cheaper, and more reliable diaspora remittances into Nigeria through direct integration with the Nigeria Inter-Bank Settlement System.

The approval positions NALA as a directly regulated player in Nigeria’s remittance ecosystem and enables the firm to bypass intermediaries, improving transaction speed, reducing costs, and enhancing transparency for cross-border payments.

At a media briefing in Lagos, Nicolai Eddy, co-founder and chief operating officer at Nala, said Nigeria is a cornerstone market for the company’s global expansion. “This licence ensures we uphold the governance standards expected by the CBN and allows us to connect directly with financial institutions, making transfers cheaper and faster for customers sending money from Europe, the UK, and the US into Nigeria,” Eddy said.

He added that the direct integration with NIBSS eliminates intermediaries, reducing transaction costs and enabling near-instant payments. “Nigeria is one of our largest markets in Africa. With this licence, we can ensure that money reaches families, businesses, and institutions quickly and reliably,” he said.

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On transactional volumes, Eddy noted that Nigeria received $23 billion in official diaspora remittances last year, though actual flows could be closer to $40 billion when unrecorded transfers are included.

“With this licensing, we can connect directly into the switch, meaning fewer delays, fewer failures, and more reliable service. The other benefit is cost. By bypassing intermediaries, we can pass savings directly to customers,” Eddy said.

He added, “Our aspiration is to handle as much of these flows as possible. Volumes in Nigeria are enormous, and our platform is designed to capture a significant share of this market.”

Brian Edwards, country manager, West Africa at NALA, highlighted how eliminating middlemen increases efficiency and value for customers. “The official remittance numbers are significant, but the reality is there is even more being sent through inforBrian Edwardsmal channels. Our goal is to bring transparency and trust into the system, allowing people to send money safely without relying on back channel arrangements,” Edwards said.

He also clarified a common misconception about taxation, noting that remittances sent through official channels are not taxable, though local taxes may apply to how recipients use the funds. “There is no risk in sending money via CBN regulated channels,” he added.

Eddy and Edwards emphasized that building trust is central to NALA’s model. The company has invested heavily in compliance, governance, and legal frameworks to prevent fraud and money laundering, ensuring every transfer is secure from end to end.

NALA’s platform offers near instant remittances with a reliability target of 99.9 percent. Instead of traditional fees, the company earns a small foreign exchange margin, which allows it to offer highly competitive rates to customers. “Our integration into the switch ensures costs are low, and maximum value is passed to the customer,” Eddy said.

The app also provides transparency by displaying competitor rates and recommending alternatives when pricing is better elsewhere.
Beyond consumer remittances, NALA operates Rafiki, its B2B payment infrastructure platform. Rafiki allows global businesses, including remittance firms such as MoneyGram, to integrate with NALA’s APIs to process cross-border payments into Africa.

“With this licence and direct NIBSS integration, we can offer both cheaper individual remittances and robust enterprise payment rails,” Eddy said.

Rafiki enables businesses to manage foreign exchange and last-mile disbursement efficiently while ensuring compliance with local regulations.

NALA highlighted its growing team of engineers, compliance officers, legal experts, foreign exchange managers, and payments operations specialists, ensuring secure, seamless, and reliable transactions across Africa, Asia, Europe, and the United States.
Edwards noted, “We support real life needs, school fees, medical bills, rent and every transaction must be secure and reliable. This licence reinforces our commitment to the Nigerian market.”

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NALA plans to deepen its local presence, pursue additional licences, and strengthen partnerships with regulators and financial institutions. The company’s move reflects a broader trend of fintech firms investing in direct infrastructure and regulatory compliance to gain a competitive edge in Africa’s fast growing digital payments sector.

For Nigeria, more efficient remittance flows could increase foreign exchange liquidity, reduce costs for recipients, and enhance financial inclusion, further cementing the country’s position as Africa’s remittance powerhouse.