CBN moves to end dollar remittances, orders naira settlement for IMTOs

The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) to adopt naira settlement accounts for remittance transactions, effectively phasing out dollar payouts to beneficiaries in Nigeria.

The policy, which takes effect from May 1, 2026, marks a major shift in the country’s foreign exchange regime, as recipients of diaspora inflows will now receive funds in local currency rather than in dollars.

This was contained in a circular issued on Monday and signed by Musa Nakorji, the bank’s director of trade and exchange.

The apex bank stated, “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 CBN said the directive is aimed at strengthening diaspora remittance inflows while improving transparency, traceability and effective monitoring of foreign exchange movements within the financial system.

Under the new framework, all transactions relating to international money transfers, including payments to beneficiaries, must be processed exclusively through the designated settlement accounts.

IMTOs are allowed to either designate existing accounts or open new ones and may operate multiple accounts across authorised dealer banks.

The regulator added that such accounts “shall only be credited with remittance flows and proceeds of foreign exchange conversions by licensed IMTOs (or their agents)” operating within the Nigerian Foreign Exchange Market.

The CBN said authorised dealer banks may process foreign currency transfers from these accounts to other approved participants, including bureau de change operators.

On pricing, the apex bank directed operators to align their rates with real-time market data from 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 bank stated.

According to the CBN, the measure is expected to enhance price discovery, reduce information asymmetry and encourage greater participation in the official foreign exchange market.

The bank also reminded IMTOs to comply with anti-money laundering and counter-terrorism financing regulations, while maintaining proper documentation for audit and regulatory oversight.

The directive forms part of ongoing reforms by the apex bank to strengthen Nigeria’s remittance framework and align it with global best practices.