The Central Bank of Nigeria has directed all International Money Transfer Operators to settle transactions exclusively in naira, ending the decades-long practice of dollar disbursements to beneficiaries.
The new policy mandates all recipients of money transfers from abroad to receive funds in naira.
In a circular issued on Monday and signed by Musa Nakorji, director of the trade and exchange department, the apex bank directed all International Money Transfer Operators (IMTOs) to open naira settlement accounts and route all remittance transactions through them. The new directive is set to take effect on May 1, 2026.
The policy shift marks a significant overhaul of Nigeria’s remittance framework, effectively dismantling a system that had allowed beneficiaries to collect funds in foreign currency for decades. According to the CBN, the move is aimed at deepening diaspora remittances while improving transparency, traceability, and the monitoring of foreign exchange (FX) flows within the economy.
How the New System Will Work
Under the new guidelines, all IMTOs are required to maintain designated naira settlement accounts with Authorised Dealer Banks (ADBs) in Nigeria. The CBN stipulated that all transactions related to international money transfers—including disbursements to beneficiaries and other settlements—must be processed exclusively through these accounts.
“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,” the circular read.
The apex bank clarified that IMTOs may designate existing accounts or open new ones and are permitted to operate multiple settlement accounts across different ADBs. These accounts, the regulator stated, “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).”
To enhance market efficiency, the CBN also authorised ADBs to process foreign currency transfers from IMTO settlement accounts to other authorised dealers and approved participants, including Bureau de Change (BDC) operators.
In a move to improve price discovery and reduce information asymmetry, the CBN has mandated that IMTOs benchmark their rates against real-time market prices on the Bloomberg 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,” the circular stated.
The bank noted that this pricing mechanism is designed to encourage participation in the official FX market, ensuring that rates offered to customers reflect current market realities rather than parallel market dynamics.
The CBN reminded IMTOs of their obligation to comply with anti-money laundering, combating the financing of terrorism, and counter-proliferation financing (AML/CFT/CPF) requirements. The regulator also directed IMTOs to maintain proper records for audit and regulatory review.
Additionally, IMTOs are required to notify the CBN’s trade and exchange department of all designated settlement accounts and provide updates whenever changes are made.
The directive forms part of ongoing efforts by the CBN to strengthen the remittance framework, building on the revised guidelines for international money transfer services introduced in January 2024.
Implications for Beneficiaries
The policy, effective May 1, 2026, effectively ends the era where Nigerians receiving money from relatives abroad could choose to collect their funds in dollars. Under the new regime, all disbursements to beneficiaries will be in naira, marking a fundamental shift in how diaspora remittances are processed and settled in Nigeria’s financial system.
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