CBN orders Naira payments for Diaspora remittances, ends Dollar disbursement

The Central Bank of Nigeria (CBN) has directed all international money transfer operators (IMTOs) to open naira settlement accounts and ensure that all remittance transactions are processed through them.

With this new policy, recipients of diaspora remittances in Nigeria will begin to receive payments in naira from May 1, 2026, ending the long-standing practice of paying beneficiaries in foreign currency when funds are sent from abroad.

The apex bank said the move is aimed at strengthening diaspora remittance inflows while improving transparency, traceability, and monitoring of foreign exchange transactions.

In a circular issued on Monday and signed by Musa Nakorji, Director of the Trade and Exchange Department, the CBN instructed all IMTOs to comply with the new directive.

“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 stated.

The CBN explained that all transactions related to international money transfers, including payments to beneficiaries and other settlements, must be processed through these accounts.

It added that IMTOs may either use existing accounts or open new ones and are allowed to maintain multiple settlement accounts across different authorised dealer banks.

According to the bank, such accounts will only receive remittance inflows and proceeds from foreign exchange conversions handled by licensed IMTOs or their agents within the Nigerian Foreign Exchange Market.

The regulator also directed IMTOs to notify its Trade and Exchange Department of all designated settlement accounts and provide updates when necessary.

To improve efficiency in the foreign exchange market, the CBN stated that authorised dealer banks may facilitate foreign currency transfers from these settlement accounts to other approved participants, including bureau de change operators.

On pricing, IMTOs were instructed 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 CBN said.

The apex bank noted that the measure would enhance price discovery, reduce information gaps, and encourage more participation in the official foreign exchange market.

It also reminded operators to comply with anti-money laundering and counter-terrorism financing regulations, while maintaining proper records for regulatory checks.

The directive is part of ongoing efforts by the CBN to strengthen the remittance system, building on reforms introduced in its revised guidelines for international money transfer services released in January 2024.

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