The Central Bank of Nigeria (CBN) has issued a new directive requiring all International Money Transfer Operators (IMTOs) to adopt a naira-only settlement system for diaspora remittances.
Under the new policy, IMTOs such as Western Union, MoneyGram, and WorldRemit are now mandated to open and maintain naira settlement accounts with authorized dealer banks in Nigeria.
Also Read:Â Naira To Dollar Exchange Rate Today, March 24, 2026
What the New Directive to Start Receiving Naira From Abroad Means
Effective from May 1, 2026, all recipients of funds sent from abroad will receive their payments strictly in naira (₦), rather than in foreign currencies like the US dollar.
This marks a significant shift from previous practices, where beneficiaries had the option to receive remittances in foreign currency, particularly in dollars.
Objectives of the Policy
The CBN stated that the directive is aimed at:
- Enhancing liquidity in the Nigerian foreign exchange market
- Promoting the stability of the naira
- Improving transparency in remittance inflows
- Strengthening the country’s financial system
Implications for Nigerians
For millions of Nigerians who rely on diaspora remittances, this policy will directly impact how funds are received and accessed. Beneficiaries will now receive the naira equivalent of funds sent from abroad, based on prevailing exchange rates.
Financial analysts suggest that while the move could help stabilize the local currency, it may also raise concerns among recipients who previously preferred holding funds in foreign currencies as a hedge against inflation.
Compliance for IMTOs
All IMTOs operating in Nigeria are expected to comply with the directive by:
- Opening naira settlement accounts with authorized banks
- Ensuring seamless conversion and payout processes
- Aligning their operations with CBN regulations before the implementation date
Failure to comply may result in regulatory sanctions from the apex bank.
Looking Ahead
The policy is part of broader monetary reforms by the CBN to manage foreign exchange inflows and strengthen economic stability. Stakeholders across the financial sector are expected to monitor its impact closely in the coming months.
Further guidelines and clarifications are expected from the apex bank as the implementation date approaches.
