Economy
Diaspora Remittances Will Be Paid in Naira Only from May 1, Says CBN
The Central Bank of Nigeria (CBN) has issued a new regulatory directive requiring all International Money Transfer Operators (IMTOs) including services like Western Union, MoneyGram, WorldRemit and others to open and maintain dedicated naira settlement accounts with authorised dealer banks in Nigeria.
According to the circular issued by the apex bank and signed by Dr. Musa Nakorji, Director of the Trade and Exchange Department, from May 1, 2026, all IMTOs must ensure that all remittance inflows, beneficiary payments and related settlements are processed exclusively through these naira accounts.
This move marks a major shift in how diaspora remittances, monies sent home by Nigerians living abroad, are received and settled in the country. Under the new framework, beneficiaries will receive payments in naira only, instead of US dollars or other foreign currencies in cash or domiciliary accounts.
The CBN says the measure aims to:
- Enhance transparency, traceability and effective monitoringof remittance flows;
- Deepen liquidity in the official foreign exchange marketby capturing remittances within the formal banking system;
- Curb leakages into the parallel FX marketand improve pricing discipline;
IMTOs are granted flexibility to designate existing naira settlement accounts or open new ones across multiple authorised dealer banks, so long as all transactions flow through these designated accounts.
In addition to the settlement rules, the CBN also directed IMTOs to reference real-time exchange rates from the Bloomberg BMatch system when pricing transactions, a move it says will reduce rate disparities and improve price discovery between banks and transfer operators.
CBN officials stress that the policy is part of broader efforts to bring remittance inflows fully into the regulated financial system, bolster market efficiency and support stability in Nigeria’s foreign exchange markets.
