The Central Bank of Nigeria (CBN) has announced a major policy shift in the management of diaspora remittances, directing all International Money Transfer Operators (IMTOs) to open and maintain designated Naira settlement accounts. The directive, which was detailed in a circular signed by the Director of the Trade and Exchange Department, Musa Nakorji, was made public in the early hours of Wednesday, March 25, 2026. This move effectively signals the end of direct US Dollar payouts for remittances, mandating that all inflows be settled exclusively in the local currency.
The new framework requires IMTOs to route all beneficiary payments and related settlement transactions through accounts maintained with Authorized Dealer Banks (ADBs). According to the apex bank, this measure is designed to “deepen liquidity” in the official foreign exchange market and provide more robust “oversight of diaspora inflows.” The CBN has set a firm implementation deadline of May 1, 2026, giving operators and banks just over five weeks to align their systems with the new transparency and traceability requirements. Under the new rules, IMTOs have the flexibility to operate multiple settlement accounts across various banks to suit their business strategies, provided they notify the CBN of all such accounts.
The policy also introduces a standardized pricing mechanism to ensure fair value for recipients. IMTOs are now instructed to benchmark their exchange rates against real-time market prices from the Bloomberg BMatch platform. This is intended to reduce the information asymmetry that previously allowed some operators to offer rates significantly lower than the market average. By anchoring payouts to a transparent global benchmark, the CBN hopes to encourage more Nigerians abroad to use official channels rather than informal “black market” networks, which are estimated to handle billions of dollars in untracked volume annually.
Financial analysts have noted that this directive is the latest in a series of “monetary tightening” steps aimed at stabilizing the Naira. By centralizing the settlement process, the CBN can more accurately track the volume of foreign exchange entering the country and ensure that these funds are reflected in the nation’s external reserves. This is about bringing the invisible hand of the diaspora into the formal light. It eliminates the practice where dollars are kept offshore while Naira is paid locally through shadow accounts.
As of Wednesday morning, major IMTOs like Western Union, MoneyGram, and Flutterwave are reportedly reviewing the technical requirements for the transition. While some stakeholders have expressed concern over the “Naira-only” restriction, the CBN insists that the move will ultimately protect consumers by ensuring they receive the most competitive market rates.
