Africhange, a self-funded remittance startup, has obtained an International Money Transfer Operator (IMTO) license for its Nigerian subsidiary, marking a milestone as the company begins seeking external investment. This license authorizes Africhange to handle inbound foreign currency transfers to Nigeria, though it limits activities to incoming transactions, prohibiting outbound transfers.
In a competitive remittance market with over 70 operators, including larger players like Lemfi and Flutterwave, Africhange aims to differentiate itself by providing lower fees and faster transfer services. Previously, Africhange depended on third-party providers to facilitate remittances to Nigeria, but the new license enables direct processing, potentially reducing operating costs and improving efficiency. Transfers over $200, however, will require partnerships with Nigerian banks, as these amounts must be deposited directly into local accounts.
The Central Bank of Nigeria (CBN) has been actively encouraging inbound remittances, issuing over a dozen IMTO licenses since May 2024. This initiative contributed to a significant increase in remittance inflows, with a $585 million flow recorded in August—a 130% increase compared to the previous year. CBN Governor Yemi Cardoso emphasized that the rise in licensed IMTOs has positively impacted Nigeria’s foreign currency inflows.
Africhange, founded in 2020, currently serves over 200,000 users in more than 100 countries, including Canada, the UK, Nigeria, and Australia, supporting a variety of currencies for cross-border transfers. CEO David Ajala highlighted the license’s potential to offer a faster, more affordable service for individuals supporting family and friends in Nigeria.