CBN Mandates Naira Settlements for Diaspora Remittances

The Central Bank of Nigeria (CBN) has mandated International Money Transfer Operators (IMTOs) to adopt naira settlement for diaspora remittances, effective May 1. This policy aims to strengthen foreign exchange (FX) security, improve transparency, and deepen confidence in Nigeria's financial system.

The new requirement compels IMTOs to open naira settlement accounts for remittance inflows, ensuring that beneficiaries receive funds in local currency. Financial analysts believe this reform will curb leakage in the FX market and ensure that inflows from the Nigerian diaspora are retained within the domestic financial system.

CBN's Director of Trade and Exchange, Musa Nakorji, emphasized that IMTOs must comply with the new framework, which includes maintaining proper records for regulatory review. The policy is designed to enhance monitoring of transactions and enforce compliance with existing regulations.

CBN Governor Olayemi Cardoso highlighted the importance of an efficient payment system during a G-24 technical group meeting in Abuja, stating that the reform is part of broader efforts to modernize Nigeria's FX framework.