CBN cancels collection of diaspora remittances in dollars

Starting May 1, 2026, recipients of diaspora remittances will no longer collect money sent to them in dollars or other foreign currency, but only in Naira.

The apex bank issued a directive on Wednesday asking all International Money Transfer Organizations (IMTOs) to open naira settlement accounts to implement this new order.

With this, the operator will then route all remittance transactions through the naira settlement account.

CBN stated that the latest policy aims to deepen diaspora remittances while increasing transparency, tracking and monitoring of foreign exchange (forex) flows.

In a circular signed by Musa Nakorji, Director of the CBN Trade and Exchange Department, the apex bank stated that the directive covers all transactions related to international money transfers, including disbursement to beneficiaries and other settlements.

“All IMTOs are hereby directed to open naira settlement accounts and ensure that all transactions are channeled strictly through designated settlement accounts, maintained with authorized dealer banks (ADB) in Nigeria,” the CBN said.

The apex bank said all transactions should be processed exclusively through designated accounts.

According to the CBN, IMTOs can designate existing accounts or open new accounts and are permitted to operate multiple settlement accounts at different dealer banks.

The CBN also directed IMTO to notify the department of trade and exchange of all designated settlement accounts and provide updates when necessary.

To improve market efficiency, the apex bank stated that authorized dealer banks can process foreign currency transfers from IMTO settlement accounts to other authorized dealers and approved participants, including bureau de change (BDC) operators.

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Regarding pricing, the apex bank instructed IMTOs to compare their interest rates with real-time market prices on Bloomberg’s BMatch platform.

CBN stated: “IMTOs should observe real-time market prices from Bloomberg BMatch and use them as a guide to determine transaction prices with their customers and authorized dealers.”

The apex bank stated that the move will improve price discovery, reduce information asymmetry and encourage participation in the official forex market.

The regulator also reminded IMTOs to comply with anti-money laundering, combating terrorism financing, and counter-proliferation financing (AML/CFT/CPF) requirements, while maintaining proper records for audits and regulatory reviews.

These new directives build on previous reforms introduced by the CBN on January 31, 2024, which provided updated guidelines for the licensing and operation of international money transfer services in Nigeria.

The apex bank emphasized that all IMTOs must fully comply with the new regulations and maintain proper records of their transactions for the purpose of regulatory checks and audits.

It also reminds operators to continue to meet the required standards in anti-money laundering, combating terrorism financing, and counter-proliferation financing, as part of efforts to maintain the integrity of the Nigerian financial system.