ABCON throws weight behind CBN’s new remittance policy, hails transparency drive

The President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has endorsed the Central Bank of Nigeria’s latest policy reforms targeting diaspora remittances, describing the measures as a bold step toward liberalizing and strengthening Nigeria’s foreign exchange framework.

The policy, introduced by the Central Bank of Nigeria (CBN), mandates International Money Transfer Operators (IMTOs) to route remittance transactions through designated Naira settlement accounts.

In addition, IMTOs are now required to access the Bloomberg BMatch trading platform for pricing transactions, a move aimed at improving price recovery and enhancing transparency in the foreign exchange market.

Reacting in a statement issued on Saturday, Gwadabe said the new directives represent a significant milestone in democratizing the remittance market while tightening regulatory oversight.

According to him, the reforms are designed to tackle long-standing challenges such as diversion and under-reporting of diaspora inflows, ensuring that remittance transactions are properly captured and monitored by the apex bank.

He particularly welcomed the decision granting IMTOs access to the Bloomberg B-Match trading platform, noting that it would eliminate operational bottlenecks, exclusivity arrangements, and monopolistic tendencies that previously characterized remittance proceeds in the market.

Gwadabe also applauded the introduction of Nigerian settlement accounts for IMTOs to be domiciled with authorized dealer banks. He explained that the initiative would create a centralized framework for remittance proceeds, thereby strengthening the CBN’s oversight functions and boosting foreign exchange liquidity to support the stability of the naira.

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“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.

Furthermore, he said the policy would enhance price discovery in the foreign exchange market, reduce information asymmetry between IMTOs and banks, and encourage wider participation in the official FX window — particularly among bureaux de change operators.

Expressing optimism about the long-term impact of the reforms, Gwadabe said the measures are expected to deepen Nigeria’s foreign exchange market and promote a more efficient, transparent, and competitive remittance ecosystem.

The endorsement from ABCON comes amid ongoing efforts by the Central Bank to stabilize the naira, improve liquidity, and restore investor confidence in the country’s foreign exchange market.