The Central Bank of Nigeria (CBN) has directed all international money transfer operators (IMTOs) to open naira settlement accounts and route all remittance transactions through them.
Under the new directive, recipients of diaspora remittances will be paid in naira starting from May 1, 2026, effectively ending the long-standing practice of dollar payouts to Nigerians receiving funds from abroad.
The policy, announced in a circular issued on Monday and signed by Musa Nakorji, director of the trade and exchange department, is aimed at strengthening diaspora remittance inflows while improving transparency, traceability, and monitoring of foreign exchange (FX) movements.
According to the CBN, IMTOs must ensure that all transactions—including disbursements to beneficiaries and other settlements—are processed strictly through designated naira settlement accounts maintained with authorised dealer banks (ADBs) in Nigeria.
Operators are permitted to either designate existing accounts or open new ones and may maintain multiple settlement accounts across different banks. However, the regulator specified that such accounts will only be credited with remittance inflows and proceeds from foreign exchange conversions handled by licensed IMTOs or their agents within the Nigerian Foreign Exchange Market.
The apex bank also instructed IMTOs to notify its trade and exchange department of all designated accounts and provide updates as required.
To improve efficiency in the FX market, the CBN stated that authorised dealer banks may process foreign currency transfers from IMTO settlement accounts to other approved participants, including bureau de change operators.
On pricing, the bank directed IMTOs to align their rates with real-time market prices available on Bloomberg’s BMatch platform, noting that this would enhance price discovery, reduce information gaps, and encourage greater participation in the official FX market.
The CBN further reminded operators to comply with anti-money laundering and counter-terrorism financing regulations, as well as maintain proper documentation for audits and regulatory oversight.
The directive forms part of the bank’s broader efforts to strengthen Nigeria’s remittance framework, building on revised guidelines for international money transfer services introduced in January 2024.
