(DDM) – Nigeria’s new naira settlement directive is significantly reshaping the country’s remittance system, marking a major shift away from foreign currency payouts.
Diaspora Digital Media (DDM) confirms that the policy mandates diaspora remittances to be paid strictly in naira rather than in dollars or other foreign currencies.
The move forms part of broader monetary reforms introduced by the Central Bank of Nigeria aimed at strengthening the local currency and tightening financial oversight.
Under the new arrangement, international money transfer operators are required to process inbound funds in foreign currency but settle beneficiaries in naira using prevailing exchange rates.
Officials say the policy is intended to boost liquidity within the domestic economy, stabilise the naira, and ease pressure on foreign exchange reserves.
The directive effectively ends the previous system where recipients had the option of receiving remittances in dollars, a method widely used across many Nigerian households.
Economic analysts note that diaspora remittances contribute billions of dollars annually to Nigeria’s economy, serving as a critical source of foreign exchange.
They explain that redirecting these inflows into the local currency system could enhance transparency and limit speculative demand for dollars.
However, the policy has sparked mixed reactions among Nigerians both at home and abroad.
Critics argue that compulsory conversion into naira may reduce the real value of remittances due to exchange rate volatility and inconsistencies in official pricing.
They caution that some senders could turn to informal or parallel channels if they perceive financial losses.
Supporters, on the other hand, believe the reform will strengthen monetary control and curb excessive reliance on foreign currencies within the economy.
They also maintain that improved regulation of remittance inflows could support long-term economic planning and stability.
Observers point out that the success of the policy will largely depend on transparency in exchange rate determination and efficiency in transaction processing.
They stress that maintaining fair and competitive rates will be essential to sustaining inflows from the diaspora community.
The reform comes as Nigeria continues efforts to stabilise its economy and attract foreign investment amid ongoing financial challenges.
Experts conclude that effective implementation will determine whether the policy enhances confidence in the financial system or pushes remittance flows outside formal channels.
