The Central Bank of Nigeria (CBN) has announced that all diaspora remittance payouts will be made exclusively in naira starting from May 1, 2026, in a policy shift aimed at strengthening oversight and improving foreign exchange management.
Under the new directive, International Money Transfer Operators (IMTOs) will no longer be permitted to disburse funds to beneficiaries in foreign currencies such as the US dollar. Instead, all remittances must be processed through designated naira settlement accounts maintained with authorised dealer banks.
Brandspur Banking News Desk reports that the policy was formalised through a circular issued by the apex bank’s Trade and Exchange Department, requiring IMTOs to route all transactions, settlements, and transfers through naira-denominated accounts within the Nigerian banking system. Operators are also required to report and maintain updated records of their settlement accounts with the regulator.
The move is part of a broader effort by the CBN to improve transparency, traceability, and regulatory control over remittance inflows, which remain a critical source of foreign exchange for Nigeria’s economy. By ensuring that all transfers are settled in naira at official Nigerian Foreign Exchange Market rates, the central bank aims to capture more foreign currency within the formal financial system and reduce leakages to informal channels.
While the policy is expected to boost foreign exchange liquidity in the official market, analysts warn that beneficiaries may face value erosion if the naira weakens against major global currencies, as remittance recipients will no longer have the option to hold or withdraw funds in dollars.
Industry stakeholders also anticipate operational adjustments among IMTOs, including the potential introduction of additional settlement fees as operators adapt their systems to comply with the naira-only payout structure.
The CBN has indicated that enhanced monitoring and compliance systems will be deployed to ensure strict adherence to the directive, signalling the regulator’s commitment to tightening controls and improving efficiency within Nigeria’s foreign exchange ecosystem.
