The Central Bank of Nigeria (CBN) has introduced a new rule mandating all International Money Transfer Operators (IMTOs), including Western Union, MoneyGram, WorldRemit and others, to open and maintain dedicated naira settlement accounts with authorised dealer banks in the country.
In a circular signed by Dr. Musa Nakorji, Director of the Trade and Exchange Department, the apex bank stated that from May 1, 2026, all remittance inflows, beneficiary payments, and related transactions must be processed strictly through these naira accounts.
This directive represents a significant change in how diaspora remittances are handled in Nigeria. Going forward, recipients will be paid only in naira, rather than in US dollars or other foreign currencies, whether in cash or through domiciliary accounts.
According to the CBN, the policy is aimed at improving transparency, traceability, and monitoring of remittance flows, while also boosting liquidity in the official foreign exchange market by channeling funds through the formal banking system. It is also expected to reduce leakages into the parallel FX market and encourage more consistent pricing.
IMTOs are allowed to either use existing naira settlement accounts or open new ones with authorised dealer banks, as long as all transactions are routed through these designated accounts.
Additionally, the CBN has instructed IMTOs to use real-time exchange rates from the Bloomberg BMatch system when setting transaction rates. This, the bank says, will help minimise rate discrepancies and improve price transparency between banks and transfer operators.
CBN officials noted that the move is part of wider efforts to integrate remittance inflows into the regulated financial system, strengthen market efficiency, and support stability in Nigeria’s foreign exchange market.
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