BREAKING: Central Bank of Nigeria Bans Dollar Payouts — Diaspora Remittances to Be Paid Only in Naira from May 1

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In a sweeping foreign exchange reform, the Central Bank of Nigeria (CBN) has announced that all diaspora remittances into Nigeria will no longer be paid in US dollars or any foreign currency, mandating exclusive payout in naira effective May 1, 2026.

The directive, contained in a circular dated March 24, 2026, was signed by Musa Nakorji, Director of the Trade and Exchange Department. It requires all licensed International Money Transfer Operators (IMTOs) — including Western Union, MoneyGram, and WorldRemit — to open and maintain naira settlement accounts with authorised dealer banks in Nigeria.

Under the new policy, all inbound remittances sent by Nigerians in the diaspora will be processed and paid strictly in naira, either through direct bank deposits or cash withdrawals. The long-standing option for recipients to collect funds in dollars has now been scrapped.

The apex bank stated that all IMTO transactions — including inflows, settlements, and beneficiary payments — must be routed exclusively through these naira accounts, which will only be credited with remittance proceeds converted into local currency. Operators are permitted to maintain multiple accounts across different banks to facilitate smooth operations.

According to the CBN, the policy is designed to enhance transparency in the foreign exchange market, improve oversight of diaspora inflows, deepen liquidity in the official forex window, and reduce pressure on the parallel market.

For millions of Nigerian families who rely on funds from abroad, the change means remittances will now be received in naira at the prevailing exchange rate on the day of transaction. While this is expected to streamline the flow of foreign exchange into the formal banking system, it also marks a significant shift from decades of dollar cash pickups.

Financial analysts say the move could boost dollar availability for critical sectors such as manufacturing and imports, while strengthening the stability of the naira in the long term.

The Central Bank of Nigeria has warned that non-compliance by IMTOs and authorised dealer banks will attract regulatory sanctions. All operators have been given a limited transition window to fully align with the directive before the May 1 implementation deadline.

This latest development forms part of broader efforts by the apex bank to stabilise Nigeria’s foreign exchange regime and maximise the economic impact of diaspora remittances — one of the country’s largest sources of external revenue.

As stakeholders assess the implications of the policy, further clarifications and implementation guidelines from the CBN are expected in the coming days.

This is a developing story.