The Central Bank of Nigeria (CBN) has moved to a “Naira-only” payout model for most diaspora remittances to help stabilize the foreign exchange market and pull more liquidity into the official banking system.
The most significant change is that International Money Transfer Operators (IMTOs) like Western Union, MoneyGram, and Remitly are now required to pay out all inbound transfers in Naira.
It will also prevent “leakage” into the parallel (black) market and ensure the foreign currency (USD, GBP, etc.) stays within the official banking reserves.
All International Money Transfers are converted using the prevailing official market rate (often referenced via platforms like Bloomberg BMatch).
​A fresh directive issued in late March 2024 (with a compliance deadline of May 1, 2026) requires all IMTOs to route their transactions through designated Naira settlement accounts held at authorized Nigerian banks.
This makes every single kobo of remittance traceable and eliminates the “middleman” loopholes that previously allowed some operators to settle transactions outside the formal banking system.
While you used to be able to pick up USD cash or have it deposited into a domiciliary account, those options have been largely restricted for standard IMTO transfers.
Even where cash is allowed (for very small amounts, typically under $200 equivalent), it must still be paid in Naira and transfers are now credited directly to the beneficiary’s Naira bank account.
​Many popular fintech apps that previously offered USD-to-USD transfers have had to suspend those services or pivot strictly to Naira payouts to comply with their IMTO licenses.
You no longer have the “Naira 4 Dollar” incentive (which ended some time ago); instead, the focus is now on ensuring you get a fair, transparent market rate directly in your local account.
