The Central Bank of Nigeria (CBN) has directed all international money transfer operators (IMTOs) to open naira settlement accounts, effectively ending dollar cash payouts for diaspora remittances in Nigeria.

Under the new policy, which takes effect from May 1, 2026, all remittance inflows must be processed and paid to beneficiaries in naira through designated accounts held with authorised dealer banks.

According to the CBN, the move is designed to improve transparency, enhance monitoring of foreign exchange flows, and deepen diaspora remittances into the formal financial system.

IMTOs are required to route all transactions—including disbursements and settlements—through these naira accounts and notify the apex bank of their designated accounts. They are also permitted to operate multiple accounts across different banks.

To ensure fair pricing, the CBN instructed operators to benchmark exchange rates against real-time data from Bloomberg’s BMatch platform, a step aimed at improving price discovery and reducing market inefficiencies.

The directive further mandates strict compliance with anti-money laundering and counter-terrorism financing regulations, alongside proper record-keeping for audit and regulatory purposes.

The policy forms part of the CBN’s broader efforts to strengthen Nigeria’s remittance framework and boost confidence in the official foreign exchange market.