CBN Rewrites the Rules on Remittances to End FX Market Exclusivity

The Central Bank of Nigeria (CBN) has unveiled a set of reforms designed to transform the management of diaspora remittances, dismantle entrenched foreign exchange monopolies, and improve transparency across the market.

Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABDCON), described the policy changes as a decisive step toward opening up access to remittances and ensuring fairer participation for all market players.

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“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,” Gwadabe said.

He added that the reforms would enhance oversight, prevent underreporting or diversion of remittance inflows, and strengthen overall confidence in Nigeria’s foreign exchange 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 noted.

The measures are aimed at breaking monopolistic practices in the remittance chain, ensuring that Bureau De Change operators and other market participants can compete on equal footing. By integrating remittances into the formal banking system, the CBN seeks to increase accountability, efficiency, and market stability.

Background
As part of the reforms, the CBN directed all International Money Transfer Operators (IMTOs) to open and maintain naira settlement accounts with authorised dealer banks. This step establishes a centralised framework for processing remittances, making the flow of funds more transparent and easier to monitor.

The policy also integrates IMTOs into the Bloomberg B-Match trading platform, expanding access and improving price discovery in the foreign exchange market. By centralising operations, the reform is expected to reduce information asymmetry, increase participation from Bureau De Change operators, and enhance market efficiency.

The CBN anticipates that the reforms will boost liquidity in the official foreign exchange market, stabilise the naira, and encourage more diaspora funds to flow through formal channels, supporting the country’s broader economic goals.