New policy ends dollar payouts, targets transparency and tighter control of Nigeria’s foreign exchange flows……
The Central Bank of Nigeria (CBN) has issued a sweeping directive requiring all international money transfer operators (IMTOs) to open naira settlement accounts and channel all remittance transactions through them, effectively ending dollar payouts to recipients in Nigeria.
Under the new policy, which takes effect from May 1, 2026, Nigerians receiving funds from abroad will now be paid exclusively in local currency, marking a major shift in how diaspora remittances are handled.
The directive was communicated in a circular signed by Musa Nakorji, directing IMTOs to comply with the updated framework aimed at improving oversight within the foreign exchange market.
According to the apex bank, all IMTOs must open and maintain designated naira settlement accounts with authorised dealer banks. These accounts will serve as the sole channels for processing all remittance-related transactions, including disbursements to beneficiaries.
“All IMTOs are hereby directed to open naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts,” the circular stated.
The CBN clarified that operators may either designate existing accounts or create new ones, and are permitted to maintain multiple settlement accounts across different authorised banks. However, such accounts will be strictly limited to remittance inflows and proceeds from foreign exchange conversions conducted within the official market.
In addition, IMTOs are required to formally notify the CBN of all designated accounts and provide updates whenever changes occur.
To improve liquidity and efficiency within the market, the central bank noted that authorised dealer banks may facilitate foreign currency transfers from IMTO accounts to other approved participants, including bureau de change operators.
On pricing, the regulator introduced a market-driven approach, instructing IMTOs to align their exchange rates with real-time data from Bloomberg’s BMatch platform. The move is expected to enhance price transparency, reduce market distortions, and strengthen confidence in the official foreign exchange system.
“IMTOs shall observe real-time market prices… and utilise this as guidance for pricing transactions,” the bank stated.
The CBN also reiterated the importance of strict compliance with anti-money laundering and counter-terrorism financing regulations, stressing the need for proper documentation and audit trails for all transactions.
The policy forms part of broader reforms introduced under the revised guidelines for international money transfer services issued in January 2024, as the central bank continues efforts to tighten regulation, improve traceability of inflows, and deepen diaspora remittances.
With this latest move, the CBN is signalling a decisive shift toward greater control and transparency in Nigeria’s foreign exchange ecosystem, one that could significantly reshape how billions of dollars in remittances flow into the country each year.
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