What CBN’s new policy on diaspora remittances means for naira to dollar exchange — Gwadabe

ABDCON supports CBN’s naira to dollar exchange policy

The president of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, has thrown his weight behind the Central Bank of Nigeria’s new policy on diaspora remittances.

CBN also directed IMTOs to access Bloomberg BMatch when pricing transactions to improve price recovery.

Recall that the apex bank mandated International Money Transfer Operators to route transactions through designated Naira settlement accounts.

Reacting in a statement to DAILY POST on Saturday, Gwadabe described the new measures as a major step toward liberalizing and democratizing the remittance market, noting that the reforms would improve transparency and strengthen regulatory oversight.

According to him, the policy would address long-standing issues of diversion and under-reporting of diaspora inflows, bringing such transactions under stricter monitoring by the apex bank.

He further highlighted the decision to grant International Money Transfer Operators (IMTSOs) access to the Bloomberg B-Match trading platform, saying it would eliminate bottlenecks, exclusivity, and monopolistic tendencies previously associated with remittance proceeds.

Gwadabe also praised the introduction of Nigerian settlement accounts for IMTSOs to be domiciled with authorized dealer banks. He said the move would create a centralized framework for remittance proceeds, enhancing the Central Bank of Nigeria’s oversight while boosting foreign exchange liquidity to support naira stability.

“The opening of settlement accounts will provide a centralization platform for the proceeds and enhance the CBN’s oversight function, while also generating higher FX liquidity for the naira,” he stated.

He added that the policy is expected to improve price discovery in the foreign exchange market, reduce information asymmetry between IMTSOs and banks, and encourage broader participation in the official market, particularly among bureaux de change operators.

Gwadabe expressed optimism that the reforms would ultimately deepen the foreign exchange market and contribute to a more efficient and transparent remittance ecosystem in Nigeria.

Credit: Ogaga Ariemu, Daily Post