David Ajala, CEO of Africhange, a cross-border payments platform, has expressed concerns over the Central Bank of Nigeria’s decision to float the naira, calling it a “risky but necessary move.” In a detailed conversation with Felix Oloyede, Ajala outlined the challenges facing Nigerians in the diaspora and how his company is addressing them.
Ajala, who migrated to Canada in 2010, said Africhange was born out of his personal experiences as an immigrant. “I started Africhange to solve a problem I lived through. Many immigrants arrive with little and must support their families back home,” he said, emphasizing that high remittance fees burden those sending money for essentials like rent, medical bills, and education.
Since launching Africhange in 2020, the platform has prioritized affordable and transparent rates. Now operational in Canada, Nigeria, Australia, and the UK, the company recently acquired an International Money Transfer Operator (IMTO) license from the Central Bank of Nigeria, allowing it to process remittances directly. “Cutting out middlemen means lower costs, faster transactions, and better rates for Nigerians,” Ajala explained.
Ajala highlighted how Nigerians abroad sent over $20 billion in remittances in 2023, contributing about 4% to the country’s GDP. However, he noted that remittance channels are plagued by high fees, delays, and fraud. “Our goal is to simplify the process and give more value back to the people,” he added.
On the naira’s floating exchange rate, Ajala acknowledged the potential long-term benefits, such as improved forex access and transparency, but warned of short-term instability. “Currency fluctuations, inflation, and rising import costs are immediate concerns,” he said, adding that structural reforms in oil production, foreign investment, and manufacturing are crucial for the success of the policy.
Ajala also addressed the broader challenges of intra-African payments, advocating for initiatives like the Pan-African Payment and Settlement System (PAPSS). “Fragmented banking systems and reliance on external currencies hinder trade within Africa. PAPSS offers a way to settle payments directly in local currencies, reducing costs and boosting regional economies,” he explained.
As Africhange eyes expansion into the U.S. and the European Union, Ajala remains focused on empowering African immigrants to strengthen their connections back home. “Immigrants rely on their resilience and community networks. Africhange exists to make that support system more efficient and impactful,” he concluded
