Seeking to improve how Nigerians abroad send money home, the approval allows NALA to plug directly into the Nigeria Inter-Bank Settlement System (NIBSS).

This removes the need to route transactions through intermediary banks, a process that usually slows transfers and adds extra expenses.

Speaking at a briefing in Lagos, Nicolai Eddy, NALA’s co-founder and chief operating officer, described Nigeria as central to the company’s growth plans in Africa.

“Nigeria is one of our largest markets on the continent. With this licence, we can ensure that money reaches families, businesses and institutions quickly and reliably,” he said.

Until now, many cross-border transfers passed through multiple financial institutions before reaching recipients, with each layer taking a fee.

Direct integration with NIBSS removes that chain, allowing funds to move more efficiently into Nigerian bank accounts.

Eddy said the licence also ensures compliance with CBN regulations while enabling faster and more cost-effective transfers from key corridors such as the UK, United States and Europe.

The expected impact includes:

• Faster transfers: Funds can arrive in Nigerian accounts within minutes
• Lower fees: Fewer intermediaries reduce transaction costs
• Improved reliability: The company is targeting a 99.9% success rate

Nigeria is one of the largest recipients of diaspora remittances in Africa, with official inflows estimated at about $23 billion annually.

Reports, however, say the true figure could be higher when informal channels are included.

Brian Edwards, NALA’s country manager for West Africa, said a key objective is to bring more of these flows into formal, regulated channels.

“The official numbers are strong, but a large volume still moves through informal routes. Our goal is to provide a trusted alternative that is transparent and secure,” he said.

He also addressed a common concern among senders, noting that remittances sent through licensed IMTOs are not subject to tax in Nigeria.

Expanding Beyond Personal Transfers

NALA is also targeting business transactions through its B2B platform, Rafiki. The service allows global firms and remittance providers, including partners such as MoneyGram, to use NALA’s infrastructure to move funds into African markets more efficiently.

This positions the company both as a consumer remittance app, and as a backend provider for cross-border payments at scale.

Transparency as a Selling Point

One of NALA’s distinguishing features is price visibility. The platform shows users how its rates compare with competitors in real time, allowing them to choose the best available option.

The company says this approach is aimed at building trust with diaspora users who are usually sensitive to exchange rates and hidden charges.

Implications for Nigeria’s Economy

Increased use of licensed IMTOs will enhance convenience for senders in Nigeria, and higher inflows through official channels can strengthen foreign exchange liquidity, support the naira and improve transparency in the financial system.

With more fintech firms securing regulatory approvals and investing in payment infrastructure, the long wait times and uncertainty that once affected cross-border transfers are gradually fading.

The oversubscribed round was led by Acrew Capital, with participation from DST Global Partners, Norrsken22, HOF Capital, Amplo, NYCA Partners, and angel investors such as Ryan King of Chime and Vlad Tenev of Robinhood.

The funding will enable Nala to scale its operations beyond Africa, targeting new markets in Asia and Latin America.

The funds will also support the enhancement of Nala’s B2B payments platform, Rafiki, which facilitates payments into Africa for global businesses.

Founded by Benjamin Fernandes in 2017, Nala initially focused on local money transfers in Tanzania before pivoting to international remittances in 2021.

The company now enables users in the EU, UK, and US to send money to 11 African markets, integrating with 249 banks and 26 mobile money services, including Kenya’s M-Pesa.

Fernandes emphasized that the decision to expand Nala’s payment capabilities was driven by user demand for comprehensive money management solutions.

The Rafiki platform supports Nala’s consumer app and aims to ensure reliable and cost-effective services for businesses making payments into and out of Africa.

The startup’s focus on reducing transaction fees is a core part of its mission. Africans lost an estimated $8 billion in fees last year, with average fees for sending money home ranging between 7-8%.

Nala’s goal is to make cross-border payments faster, safer, and more affordable, addressing a huge financial challenge on the continent.

With the new funding, Nala plans to launch its own payment rails and expand its reach, building a solid payments industry.

The company’s growth direction looks positive, having already achieved profitability and serving nearly 500,000 customers. Nala’s B2B platform is gaining traction, with early clients like UK-based fintech TransferGo using Rafiki for African payouts.

The World Bank predicts a 1.5% growth in remittance flows to sub-Saharan Africa this year, highlighting the ongoing demand for remittance services.

Nala’s expansion into new markets aligns with this trend, aiming to provide reliable and low-cost remittance solutions on a global scale.

Acrew Capital’s founding partner, Lauren Kolodny, is confident in Nala’s potential, noting the team’s deep local knowledge, fintech expertise, and community-building skills as key factors in their success.

Kolodny believes Nala will lead the next generation of remittances for Africa’s growing youth population.