“Pay in Naira”: CBN Issues New Remittance Rule to Western Union, MoneyGram, Other IMTOs
- The CBN has mandated that all international remittances must now be settled in naira through authorised local banks
- IMTOs gain flexibility under strict guidelines, ensuring transparency in remittance operations
- Real-time exchange rates will improve pricing fairness and stability in Nigeria's remittance ecosystem
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Central Bank of Nigeria (CBN) has introduced a sweeping directive that reshapes how Nigerians receive money from abroad, ordering all international money transfer operators to settle remittances in naira through authorised local banks.
The new rule affects major operators such as Western Union and MoneyGram, alongside other licensed IMTOs.
Source: Twitter
The move is part of a broader push to improve transparency, strengthen oversight, and boost liquidity in Nigeria’s official foreign exchange market.
The directive was communicated in a circular titled “Measures to Further Enhance Compliance in the Remittance Space,” signed by Musa Nakorji, Director of the Trade and Exchange Department.
Mandatory routing through Nigerian banks
Under the new framework, all remittance inflows must pass through accounts held with authorised dealer banks in Nigeria. This includes both the disbursement of funds to beneficiaries and all related settlement processes.
By mandating this structure, the CBN aims to eliminate loopholes that previously allowed funds to circulate outside formal and traceable channels. The policy effectively centralises remittance flows within the regulated banking system, ensuring better monitoring and accountability.
For millions of Nigerians who depend on diaspora support, this signals a shift toward a more controlled but transparent system of receiving funds.
IMTOs get flexibility, but with strict conditions
While tightening oversight, the CBN has also allowed IMTOs some operational flexibility.
Transfer operators can maintain multiple Naira settlement accounts across different authorised dealer banks, depending on their business strategies.
However, the conditions are clear. All remittance inflows and proceeds from foreign exchange conversions must be credited strictly into these designated accounts. There is no room for alternative or informal channels.
This balance of flexibility and control is designed to keep operators compliant while ensuring that all foreign exchange inflows are captured within the official system.
Real-time exchange rates now mandatory
In a significant step toward improving pricing transparency, the apex bank has directed IMTOs to adopt real-time exchange rates from Bloomberg BMatch when processing transactions.
This requirement is expected to reduce discrepancies in exchange rate pricing, limit arbitrage opportunities, and create a more level playing field between banks and transfer operators.
For recipients, it could mean fairer and more predictable exchange rates when converting foreign currency into naira.
What this means for Nigeria’s economy
Diaspora remittances remain one of Nigeria’s most vital sources of foreign exchange, often surpassing oil revenues in stability.
By tightening controls and improving visibility over these inflows, the CBN is seeking to channel more funds into the official market.
The policy is also expected to deepen liquidity, support the naira, and enhance confidence in the country’s foreign exchange management framework.
While the transition may require adjustments from both operators and recipients, the long-term goal is clear: a more transparent, efficient, and stable remittance ecosystem that better serves Nigeria’s economy.
Source: Twitter
CBN tackles money laundering in Nigeria
Legit.ng earlier reported that the Central Bank of Nigeria (CBN) introduced new technology-driven regulations requiring banks and other financial institutions to deploy automated anti-money laundering (AML) systems to strengthen the detection of suspicious financial transactions.
In a circular issued on March 10, 2026, titled “Baseline Standards for Automated Anti Money Laundering (AML) Solutions for Financial Institutions in Nigeria”, the apex bank said the new policy is aimed at improving the monitoring and reporting of financial crimes in Nigeria’s increasingly digitised financial system.
The instruction was sent to banks, mobile money operators, international money transfer operators, payment service providers, and other financial institutions.
Source: Legit.ng
