The Central Bank of Nigeria (CBN) has ordered all international money transfer operators (IMTOs) to open naira settlement accounts and route all remittance transactions through them, effectively ending dollar payouts to recipients in Nigeria.
The policy, which takes effect May 1, 2026, requires that diaspora remittances be disbursed in local currency, marking a significant shift in Nigeria’s foreign exchange framework.
In a circular issued Monday and signed by its Director of Trade and Exchange Department, Musa Nakorji, the CBN said the move is aimed at improving transparency and oversight of foreign exchange flows while deepening remittance inflows.
“All IMTOs are hereby directed to open Naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts, maintained with authorised dealer banks (ADBs) in Nigeria,” it stated.
Under the new rules, all remittance-related transactions, including beneficiary disbursements and settlements, must be processed exclusively through the designated accounts.
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The apex bank said IMTOs may either designate existing accounts or open new ones and can operate multiple accounts across different authorised dealer banks.
Such accounts “shall only be credited with remittance flows and proceeds of foreign exchange conversions by licensed IMTOs (or their agents) with authorised market participants in the Nigerian Foreign Exchange Market (NFEM),” it added.
IMTOs are also required to notify the apex bank of their designated accounts and provide updates as necessary.
To improve market efficiency, authorised dealer banks may process foreign currency transfers from IMTO settlement accounts to other authorised dealers and approved participants, including bureau de change operators.
On pricing, the CBN directed IMTOs to align their rates with real-time market prices on Bloomberg’s BMatch platform.
“IMTOs shall observe real-time market prices from the Bloomberg BMatch and utilise this as guidance for pricing transactions with their customers and authorised dealers,” CBN said.
According to CBN, the directive will enhance price discovery, reduce information asymmetry, and drive participation in the official foreign exchange market.
It also reiterated compliance requirements on anti-money laundering, combating the financing of terrorism, and counter-proliferation financing, alongside record-keeping obligations for audit and regulatory review.
The directive forms part of the CBN’s broader effort to strengthen Nigeria’s remittance framework following revised guidelines issued in January 2024.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
