ABCON Welcomes CBN Policy on Diaspora Remittance, Lists Benefits
- The Central Bank of Nigeria has issued a new directive to IMTOs on diaspora remittance
- The apex bank said all remittance-related transactions must now be processed in naira
- Aminu Gwadabe in an exclusive chat with Legit.ng praised the CBN's new directives to IMTO
The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has welcomed the Central Bank of Nigeria’s (CBN) latest reforms on diaspora remittances.
He describes the move as a catalyst for improving transparency, boosting inflows, and dismantling long-standing foreign exchange market monopolies.
Source: Getty Images
ABCON praises CBN new directive on IMTO
Speaking in a chat with Legit.ng on Friday, March 27, Gwadabe said the policy marks a pivotal step toward liberalising and democratising access to diaspora remittances, while addressing inefficiencies and opacity that have historically affected remittance flows.
He commended the Central Bank of Nigeria for the reforms, noting that they would strengthen oversight, reduce diversion and underreporting of remittance inflows, and improve confidence in Nigeria’s foreign exchange market.
Gwadabe also said the integration of International Money Transfer Operators (IMTOs) into the Bloomberg B-Match trading platform would help eliminate unnecessary barriers, exclusivity, and monopolistic tendencies in the remittance value chain.
He added that the opening of naira settlement accounts with authorised dealer banks would provide a centralised structure for monitoring inflows, enhance regulatory oversight, and support foreign exchange liquidity needed for naira stability.
According to him, the reforms are expected to improve price discovery, reduce information asymmetry between IMTOs and banks, and encourage greater participation in the official foreign exchange market, particularly among Bureau De Change operators.
The CBN’s policy, he said, reflects a deliberate effort to integrate diaspora remittance inflows into the formal financial system, thereby improving accountability and overall market efficiency.
His words:
"First I want to commend the central bank management on this market reforms as it is a catalyst to a total democratization and liberalization of the diaspora remittances.
"The hitherto diversion and under reporting of the true volumes of the Diaspora remittances will now be under the strict monitoring of the apex bank.
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"The granting of Access to the IMTSO into the Bloomsberg B-Match trading fx platforms will eliminate unnecessary hurdles, exclusiveness and monopoly usually associated with the proceeds of the Diaspora remittances.
"The opening of settlements accounts to be domiciled with the Authorized Dealers banks will will provide a centralization platform of the proceeds for the CBN’s oversight function and generating higher fx liquidity for the naira stability.
"The impacts of this policy will includes the following in the market. Improve price discovery,reduce information asymmetry between IMTSOs and banks, enhanced increased participation in the official market especially for the BDCs"
Source: Getty Images
CBN's new directive to IMTOs
Legit.ng earlier reported that on Tuesday, March 26, the CBN directed all IMTO operating in the country to open and maintain naira settlement accounts with authorised dealer banks.
In a move aimed at tightening oversight of diaspora remittances and improving transparency in the foreign exchange market.
The circular, dated March 24, 2026, and signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji, mandates IMTOs to route all remittance transactions through designated settlement accounts.
It also requires that all inflows, beneficiary payments, and related settlements be processed exclusively through these accounts.
Under the framework, IMTOs are permitted to operate multiple settlement accounts across different banks, provided such accounts are properly designated and registered with the CBN.
The accounts must be funded strictly through remittance inflows and proceeds from foreign exchange conversions within the Nigerian FX market.
To enhance efficiency, the apex bank directed IMTOs to adopt market-reflective pricing using the Bloomberg B-Match system, ensuring real-time price guidance in transactions with customers and authorised dealers.
Source: Legit.ng
