CBN forces Naira payouts for remittances as inflows hit $21bn
Nigeria’s central bank is forcing remittances to be paid exclusively in Naira at market rates, a regulatory shift aimed at formalising a $21 billion inflow stream before generational changes erode diaspora sending habits.
The Central Bank of Nigeria has ordered all licensed international money transfer operators to pay incoming remittances exclusively in Naira. A directive dated March 24, 2026, effective May 1, mandates that these payouts use the real-time foreign exchange price reflected through Bloomberg BMatch.
The policy is designed to give regulators real-time visibility over dollar inflows and reduce pressure on the parallel market. By forcing settlements through licensed accounts, the CBN aims to build the formal infrastructure needed to sustainably manage Nigeria's remittance corridors.
Nigeria received $20.93 billion in total remittances in 2024, the highest level in five years. The World Bank projects total inflows will reach approximately $23 billion in 2025, cementing the country's position as one of the top two recipients in Africa alongside Egypt.
The 2024 surge was directly driven by the 2023 exchange rate unification, which removed the financial incentive to bypass official channels. However, formal operator inflows in the first half of 2025 fell 11.78% to $2.07 billion. This $276 million shortfall suggests the initial gains have not yet become a structural foundation and that money continues to flow through informal channels.
A major barrier to formalisation remains price. Sub-Saharan Africa is the world’s most expensive region to send money to, with average transfer costs above 7%. Many routes into Nigeria still exceed the 3% Sustainable Development Goal target, creating a hefty toll that keeps senders and receivers in the informal economy.
The Mexican blueprint
The contrast with Mexico highlights what deliberate policy architecture can achieve. Mexico received a record $64.7 billion in 2024, with transfer costs well below the 6.36% global average thanks to three decades of bilateral cooperation and platforms like Directo a México. Even when 2025 inflows dropped 4.6% to $61.8 billion due to US immigration enforcement, the mature formal network absorbed the shock.
Nigeria faces a structural time limit that makes infrastructure upgrades urgent. Turkey received just $982 million in 2024 despite having a diaspora of roughly six million people in some of Europe’s wealthiest economies. Research shows remittance willingness collapses across generations as families reunite in destination countries, a fate Nigeria must avoid as its current first-generation migrants age.
Analsysts suggest Nigeria's next priority should be formal bilateral corridor agreements, particularly with the UK, to replicate the cost reductions seen in the US-Mexico corridor. Expanding mobile money access to unbanked recipients is equally critical, as cash-payout fees currently erode the value of every transfer before it reaches the intended household.
