By Erewunmi Peace

The Central Bank of Nigeria (CBN) has announced a new policy directing that all diaspora remittances be paid to beneficiaries in naira, ending the practice of cash payouts in foreign currencies.

According to the directive, which is set to take effect from May 1, 2026, International Money Transfer Operators (IMTOs) are required to process remittances through licensed Nigerian banks and ensure recipients receive funds in local currency.

Under the new arrangement, funds sent from abroad can still be received in Nigeria; however, beneficiaries will no longer have the option of collecting the money in dollars or other foreign currencies. Instead, such remittances will be converted to naira before payment.

The CBN stated that the move is aimed at improving transparency in foreign exchange transactions, strengthening the naira, and ensuring better regulation of inflows from the diaspora.

Financial experts say the policy could increase the supply of foreign exchange within the official market while reducing reliance on informal channels.

However, the development has generated mixed reactions among Nigerians, particularly among recipients who prefer to receive funds in foreign currency due to exchange rate fluctuations.

The new directive marks a significant shift in Nigeria’s remittance policy and is expected to impact how millions of Nigerians receive funds from abroad.