Economist warns CBN’s naira-only remittance policy may widen forex gap
Ibadan, March 2026 (TBL Africa) An Economist, Dr Alarudeen Aminu, has warned that the Central Bank of Nigeria’s (CBN) new policy ending dollar cash payouts for diaspora remittances could widen the gap between official and parallel foreign exchange markets.
Aminu, an Associate Professor of Economics at the University of Ibadan said this in an interview on Monday
He said although the policy might be aimed at conserving the nation’s foreign exchange resources, it could also trigger distortions in the forex market if allowed to persist for too long.
“The goal might be to conserve the nation’s forex resources so that some semblance of stability can prevail in our official forex market in view of the consequences of the on-going war in the Middle-East,” Aminu said.
According to him, one likely consequence of the policy is reduced availability of foreign currency in the parallel market.
“While the official or inter-bank market may begin to reflect a premium due to the retention of remittance inflows that are no longer directly accessible to domestic recipients,” he said.
Aminu, who is also the Chairman of Nigerian Economic Society, Oyo State chapter, said this could widen the gap between official and parallel market exchange rates.
He also said that the policy could create arbitrage opportunities for banks and well-connected individuals able to access foreign exchange at official rates and resell at higher rates in the parallel market.
The economist warned that if the difference between both rates widens significantly, the economy could again face inefficient allocation of forex, with negative consequences for businesses and households.
He further said that firms might begin to price imported inputs and other goods using parallel market rates, even when they obtained foreign exchange through official channels at relatively cheaper rates, thereby worsening inflationary pressures.
Aminu, however, expressed hope that the measure would only remain in force for the duration of the current Middle-East crisis.
He warned that a prolonged implementation could erode the gains already made in narrowing the gap between official and parallel market exchange rates.
The CBN had in a recent circular to International Money Transfer Operators (IMTOs) and authorised dealer banks, directed that all remittance inflows, beneficiary disbursements and related settlements be processed through designated naira settlement accounts.
This, according to the CBN, was part of measures to deepen diaspora remittances and improve efficiency in the foreign exchange market.
