CBN Directs IMTOs To Convert Dollar Remittances From Diaspora To Naira Payments

The Central Bank of Nigeria (CBN) has instructed all international money transfer operators (IMTOs) to create naira settlement accounts and process all remittance payments through them.

With this change, Nigerians receiving money from abroad will begin to get their funds in naira instead of dollars starting from May 2026.

This marks a shift from the long-standing practice where recipients were paid in foreign currency.

According to the CBN, the new rule is designed to strengthen diaspora remittances while making foreign exchange flows easier to track and more transparent.

The directive, which takes effect on May 1, 2026, was announced in a circular signed by Musa Nakorji, director of the bank’s trade and exchange department.

“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 reads.

The apex bank also stated that operators can either use existing accounts or open new ones, and they are free to maintain multiple settlement accounts across different authorised dealer banks.

The CBN said 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)”.

IMTOs are required to inform the CBN about all their designated settlement accounts and update the regulator whenever there are changes.

To improve efficiency in the foreign exchange market, authorised dealer banks will be allowed to move foreign currency from these settlement accounts to other approved participants, including bureau de change operators.

On exchange rates, the CBN directed IMTOs to align their pricing with real-time market rates available 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,” the CBN said.

This, according to the bank, will help ensure fair pricing, reduce information gaps, and encourage more activity in the official FX market.

The regulator also reminded operators to strictly follow anti-money laundering and counter-terrorism financing rules, as well as keep proper records for audits and regulatory checks.

The CBN explained that this move is part of its broader plan to improve Nigeria’s remittance system, building on updated guidelines for international money transfer services introduced in January 2024.

KanyiDaily recalls that President Bola Tinubu recently nominated Lamido Abubakar Yuguda to serve as a deputy governor of the Central Bank of Nigeria (CBN).