Grey, the Y Combinator-backed cross-border payments Fintech has secured approval from the Central Bank of Nigeria (CBN) to operate as an International Money Transfer Operator (IMTO), allowing it to facilitate inbound international money transfers directly into Nigeria.
The approval authorises the company to process person-to-person (P2P), business-to-person (B2P) and business-to-business (B2B) transactions. It also enables Grey to expand its connections to international payment corridors and establish a more formal presence in Nigeria’s remittance market.
The development, announced in a statement shared on Tuesday, comes as Nigeria continues to attract substantial diaspora remittance inflows. World Bank data put Nigeria’s personal remittance receipts at approximately $22.8 billion in 2025.
Commenting on the approval, Idorenyin Obong, Grey’s Chief Executive Officer and Co-Founder, said regulatory compliance remained central to the company’s expansion strategy.
“Regulatory compliance is central to how we build and operate our financial services. As we expand across markets, it is important that our operations meet the requirements of the regulators responsible for overseeing them.
“Securing CBN approval to operate as an IMTO is an important step for Grey in Nigeria. It strengthens our ability to facilitate inbound international transfers and reflects our long-term commitment to building reliable financial infrastructure for individuals and businesses operating across borders.”
Grey’s CBN Approval Follows $5 billion Payments Milestone
The regulatory approval comes days after Grey introduced Paycheck, a salary product designed for professionals earning in foreign currencies.
The company also announced at the Moonshot technology conference on October 29, 2026, that it had surpassed three million users and processed nearly $5 billion in payments.
Grey reported a 170% year-on-year increase in transaction volume, highlighting the growth of its cross-border payments business.
Paycheck is designed for professionals receiving salaries in US dollars, British pounds and euros. The product offers an introductory savings yield of 3 per cent alongside higher transaction limits.
The new IMTO authorisation strengthens Grey’s ability to manage the Nigerian leg of these international transactions, particularly as more remote workers convert their foreign earnings into naira shortly after receiving them.
Why the IMTO Licence Matters
The approval gives Grey a more direct regulatory route for handling inbound remittances rather than relying entirely on third-party banking and payment partners to settle transactions in Nigeria.
This is particularly significant following changes in the foreign exchange market, which have altered the incentives for Nigerian professionals earning in foreign currencies.
Between December 2021 and February 2024, the sharp depreciation of the naira encouraged many remote workers to retain their dollar earnings in foreign currency wallets rather than convert them immediately.
However, the subsequent strengthening of the naira has changed that calculation. By October 2026, the parallel-market exchange rate had improved to approximately N1,370-N1,390 per dollar, reducing the naira value of foreign currency balances held by Nigerian earners.
For cross-border fintechs, the shift means that users increasingly convert their earnings into local currency rather than maintain substantial foreign currency balances on their platforms.
Grey’s Paycheck product and its new IMTO approval provide complementary responses to this changing market. While Paycheck seeks to attract and retain foreign-currency salary earners, the IMTO authorisation allows the company to participate more directly in the regulated settlement of incoming transfers.
