Experts Endorse Naira Settlement Policy for Diaspora Remittances
- 6 days ago
- 1 min read
Financial analysts have thrown their weight behind the Central Bank of Nigeria’s directive mandating naira settlement for diaspora remittances, describing the move as a decisive step toward strengthening the country’s foreign exchange management system.
Under the new framework, international money transfer operators are required to channel all remittance inflows through designated naira accounts within the Nigerian banking system, with recipients receiving funds strictly in local currency.
Experts say the policy is designed to ensure that foreign exchange inflows from Nigerians abroad are retained within formal channels, thereby improving liquidity and reducing reliance on informal markets.
They also note that the measure will enhance transparency, as transactions processed through regulated accounts can be more easily tracked and monitored by financial authorities.
In addition, analysts believe the directive will help curb speculative practices that previously arose from disparities between official and parallel market exchange rates.
The apex bank has further instructed operators to align their pricing with real-time market rates, a move expected to standardise exchange rate determination and improve confidence in the system.
Stakeholders add that the policy reinforces ongoing efforts to strengthen compliance with anti-money laundering and counter-terrorism financing regulations, ensuring greater accountability across the remittance ecosystem.
Overall, industry observers maintain that the success of the initiative will depend on effective implementation, but agree that it has the potential to enhance foreign exchange stability and support long-term economic growth.
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