No More Dollar Payouts: CBN Mandates Naira-Only Diaspora Remittances from May

The Central Bank of Nigeria (CBN) has directed all international money transfer operators (IMTOs) to open naira settlement accounts and process all remittance transactions through them, marking a shift away from dollar payouts to recipients in Nigeria.

Under the new directive, Nigerians receiving funds from abroad will be paid in naira starting May 1, 2026. The policy was outlined in a circular issued on March 24 and signed by Musa Nakorji, director of the CBN’s trade and exchange department.

The apex bank said the measure is designed to improve transparency, traceability, and oversight of foreign exchange flows, while also supporting increased diaspora remittances.

According to the circular, IMTOs must route all transactions—including beneficiary payments and settlements—through designated naira accounts held with authorised dealer banks. Operators may use existing accounts or open new ones and are permitted to maintain multiple settlement accounts across different banks.

The CBN specified that the accounts will only receive remittance inflows and proceeds from foreign exchange conversions carried out through authorised participants in the Nigerian Foreign Exchange Market.

IMTOs are also required to notify the regulator of all designated accounts and provide updates when changes occur.

To improve liquidity and efficiency in the market, authorised dealer banks may transfer foreign currency from IMTO accounts to other approved participants, including bureau de change operators.

On pricing, the CBN instructed IMTOs to align their rates with real-time data from Bloomberg’s BMatch platform. The bank said this would enhance price discovery, reduce information gaps, and encourage activity within the official foreign exchange market.

The directive also reiterates compliance requirements on anti-money laundering and counter-terrorism financing rules, with operators expected to maintain proper documentation for regulatory review.

The move forms part of broader reforms to Nigeria’s remittance framework, following updated guidelines introduced by the CBN in January 2024.