CBN Ends Dollar Payouts for Diaspora Remittances, Mandates Naira Payments
The Central Bank of Nigeria (CBN) has announced a major policy shift, directing that all diaspora remittances to Nigeria will no longer be paid out in dollars or any other foreign currency.
Under the new directive, recipients of funds sent from abroad will now receive their money strictly in naira. The policy is set to take effect from May 1, marking a significant change in how international money transfers are handled in the country.
To implement the decision, the apex bank has instructed all International Money Transfer Operators (IMTOs) to open and maintain naira settlement accounts with authorised dealer banks in Nigeria. All remittance inflows and disbursements must now be processed through these accounts.
The directive covers all aspects of international money transfers, including payments to beneficiaries and settlements between financial institutions. This effectively eliminates the long-standing option for recipients to collect remittances in foreign currency.
According to the CBN, the policy is aimed at improving transparency, enhancing monitoring of foreign exchange flows, and strengthening the formal financial system. It is also expected to boost liquidity in the foreign exchange market and reduce pressure on the parallel market.
The move represents a broader effort by the central bank to stabilise Nigeria’s foreign exchange regime and maximise the economic benefits of diaspora inflows, which remain a critical source of revenue for the country.
However, the development signals a major adjustment for millions of Nigerians who rely on remittances from abroad, as payouts will now be based on prevailing exchange rates in naira rather than direct access to foreign currency.
