The Central Bank of Nigeria (CBN) has issued a new directive to all International Money Transfer Operators (IMTOs) regarding diaspora remittances into the country.
Starting May 1, 2026, all money sent from abroad must be paid to beneficiaries in Naira. This policy uses the proceeds of foreign exchange conversions to handle these payments.
The apex bank originally issued the revised guidelines for international money transfer services on January 31, 2024.
This latest notice, signed by Dr. Musa Nakorji on Wednesday, builds upon that framework. He serves as the Director of the Trade and Exchange Department at the CBN.
The apex bank wants to improve transparency and traceability in the foreign exchange market.
The bank alleged that this policy will help monitor all transactions more effectively.
To achieve this, every international operator must now open a specific Naira settlement account.
Mandatory Naira Settlement Accounts For All International Money Operators
The CBN has instructed all IMTOs and Authorised Dealer Banks (ADBs) to follow strict routing rules.
Operators must ensure that every transaction goes through their designated settlement accounts.
This includes disbursements to people receiving money and all related financial settlements.
“All IMTOs are hereby directed to open Naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts,” the CBN stated.
The bank added that operators can choose to use existing accounts or open new ones with multiple banks.
“This means that all transactions arising from international money transfer operations must be processed exclusively through the IMTO’s settlement account held with any ADB of their choice,” the notice clarified.
These accounts will only receive remittance flows and proceeds from licensed foreign exchange conversions.
Real-Time Market Pricing Guidelines To Improve Transparency
The apex bank wants to stop information gaps between banks and money transfer operators. To do this, it has directed IMTOs to watch real-time market prices on the Bloomberg BMATCH system.
This platform will act as a guide for pricing transactions with customers and dealers.
“In order to support market efficiency and enhance pricing outcomes, ADBs may process foreign currency transfers from IMTO settlement accounts to other ADBs and approved market participants,” the CBN stated.
The bank alleged that this will encourage more people to use the official foreign exchange market.
Licensed operators must report their list of designated settlement accounts to the Trade and Exchange Department.
They are also expected to update this list regularly. The bank alleged that keeping accurate records is a requirement for future regulatory reviews and audits.
“IMTOs are reminded to maintain acceptable standards and comply with AML/CFT/CPH requirements,” the statement concluded. This refers to anti-money laundering and counter-terrorism financing rules. The bank expects full compliance from all operators by the May deadline.
This report could affect how you will receive money from family and friends living abroad.
Instead of receiving foreign currency and selling in the open market, you will now receive the equivalent value in Naira at the prevailing official market rate.
Do you believe that paying all diaspora remittances in Naira will successfully stabilise the exchange rate and reduce the influence of the black market? And do you agree with those who say that the government is merely seeking to profit from the hard work and remittances of private citizens in the diaspora? Share your views.
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