In a major move to stabilize the foreign exchange market, the Central Bank of Nigeria (CBN) has banned the payout of diaspora remittances in dollars or any other foreign currency.
Starting May 1, 2026, all beneficiaries of international money transfers will receive their funds exclusively in Naira.
The apex bank issued a circular signed by Musa Nakorji, Director of the Trade and Exchange Department, directing all International Money Transfer Organisations (IMTOs) to open dedicated Naira settlement accounts with authorized dealer banks.
All remittance transactions must now be routed through these accounts to ensure transparency and "traceability" of forex inflows.
Key highlights of the new CBN directive include:
Naira Only: Payouts in USD, GBP, or EUR are strictly prohibited at the counter.
Market Pricing: IMTOs must now benchmark their exchange rates against real-time prices on Bloomberg’s BMatch platform.
Inter-Bank Transfers: Authorized dealers may process foreign currency from IMTO settlement accounts to other approved participants, including BDCs.
The CBN stated that this policy is designed to reduce "information asymmetry" and discourage the diversion of forex to the unofficial black market.
By forcing remittances into the official system, the regulator hopes to deepen the national forex pool and provide better monitoring of the billions of dollars sent home by Nigerians in the diaspora annually.
#CBN #Naira #Forex #Remittances #NigeriaEconomy #Diaspora #Fintech #MoneyTransfer
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