The Central Bank of Nigeria’s latest reforms on diaspora remittances are set to dismantle long-standing foreign exchange market monopolies while boosting inflows and improving transparency.

The President of the Association of Bureau De Change Operators of Nigeria (ABDCON), Aminu Gwadabe, described the central bank’s policy direction as a pivotal step toward liberalising and democratising access to diaspora remittances.

Gwadabe noted that the reforms would eliminate longstanding inefficiencies and opacity that have historically affected remittance flows.

What ABCON president is saying

Gwadabe commended the CBN for the reform, highlighting its potential to enhance transparency and democratise remittance channels.

• “First, I want to commend the central bank management on these market reforms, as they serve as a catalyst for the total democratisation and liberalisation of diaspora remittances,” he said.

He added that the reforms would tighten oversight, curb diversion and underreporting of remittance inflows, and strengthen confidence in Nigeria’s FX market.

• “The granting of Access to the IMTSO into the Bloomberg B-Match trading FX platforms will eliminate unnecessary hurdles, exclusiveness and monopoly usually associated with the proceeds of the Diaspora remittances,” he added.
• The policy is expected to dismantle monopolistic tendencies in the remittance value chain and level the playing field for Bureau De Change operators and other participants.

The move signals a deliberate effort by the apex bank to integrate remittance inflows into the official financial system, increasing accountability and market efficiency.

Backstory

On Tuesday, March 24, 2026, the Central Bank of Nigeria (CBN) directed all International Money Transfer Operators (IMTOs) 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 directive was contained in a circular dated March 24, 2026, signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji, and addressed to IMTOs, authorised dealer banks, and the general public.

A key feature of the reform is the integration of International Money Transfer Operators (IMTOs) into the Bloomberg B-Match trading platform, designed to expand access and enhance market transparency.

• IMTOs are now required to open and maintain naira settlement accounts with authorised dealer banks, creating a centralised remittance framework.
• Centralisation is expected to improve price discovery in the FX market, reduce information asymmetry between IMTOs and banks, and increase participation by BDC operators.
• The reform also aims to boost liquidity in the official FX market and stabilise the naira by channeling more remittances through formal banking systems.

In January 2025, the CBN approved the release of the Nigerian Foreign Exchange (FX) Code, a move aimed at fostering ethical conduct and transparency within the nation’s foreign exchange market.

The CBN emphasized that the introduction of the FX Code is part of its ongoing efforts to enhance the stability and integrity of Nigeria’s FX market.