The Central Bank of Nigeria announced on April 16, 2026, that from May 1, 2026, overseas remittances will no longer be made in U.S. dollars, and will only be settled in naira through designated accounts, marking the official end of its U.S. dollar payment model.
1. Core Policy Content
1.1. Implementation Time: The new regulation will officially take effect on May 1, 2026, with a transition period from the date of announcement to April 30.
1.2. Scope of Application: Applicable to overseas remittance services, requiring all cross-border capital flows to be completed through designated Naira accounts. Direct settlement channels in US dollars and other currencies will be closed.
2. Policy Background and Motivation
2.1. Alleviation of Local Currency Depreciation Pressure: The Central Bank of Nigeria previously imposed import restrictions due to the sharp depreciation of the Naira, leading to tight liquidity in the foreign exchange market. This policy adjustment aims to stabilize the exchange rate through local currency settlement.
2.2. Acceleration of De-dollarization Trend: Several African countries (such as Kenya and the Democratic Republic of Congo) have recently introduced measures to reduce reliance on the US dollar. Nigeria's move is consistent with regional trends and is also influenced by rising geopolitical risks amid US-China competition.
2.3. Opportunity for Renminbi Internationalization: China and Nigeria have renewed a 15-billion-Naira local currency swap agreement. Informal Renminbi settlement systems have emerged in Nigeria through logistics companies, providing support for policy implementation.
3. Regional Demonstration Effect
If the policy proves effective, it may encourage more African countries to follow suit, further weakening the dominance of the US dollar in African trade.
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For customers from the following countries in Africa, we can accept the payment in local currency.
Nigeria, Uganda, Zambia, South Africa, Ghana, Tanzania, Kenya, Egypt, Cameroon, Benin, Democratic Republic of the Congo, Burkina Faso, Rwanda, Senegal, Togo, Côte d'Ivoire
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