CBN Mandates Naira-Only Payouts for Diaspora Remittances from May 1
The Central Bank of Nigeria (CBN) has ordered that all international money transfers be paid out exclusively in Naira starting May 1, 2026. In a directive issued on Wednesday, the apex bank stripped beneficiaries of the option to receive foreign currency directly from International Money Transfer Operators (IMTOs). Instead, all incoming funds must be converted at prevailing market rates before disbursement. This policy aims to centralise foreign exchange flows, bolster the Naira’s liquidity, and eliminate the “grey market” diversion of diaspora remittances.
To enforce this transition, every licensed IMTO must now open a dedicated Naira settlement account with an Authorised Dealer Bank (ADB) in Nigeria. The CBN insists that all transactions, from the point of entry to the final payment to a grandmother in a village, must be routed strictly through these monitored accounts. These settlement accounts can only be credited with verified remittance flows or proceeds from legal currency conversions. By tethering every dollar to a specific Naira account, the regulator intends to achieve total transparency and “traceability” in the remittance sub-sector.
Market pricing will no longer be left to the whims of individual operators. The CBN has directed IMTOs to use real-time data from the Bloomberg BMATCH system as their primary pricing guide. This move is designed to reduce the “information asymmetry” that often allows banks and operators to profit from wide spreads at the expense of customers. By forcing transparency on exchange rates, the bank hopes to encourage more Nigerians abroad to use official channels rather than unregulated black-market alternatives.
The directive also provides a new window for liquidity to move through the official system. Authorised Dealer Banks are now permitted to process foreign currency transfers from IMTO settlement accounts to other banks and licensed Bureau De Change (BDC) operators. This creates a more fluid internal market for the foreign exchange that enters the country via remittances. The goal is to ensure that every dollar sent home contributes to the official Nigerian Foreign Exchange Market (NFEM) rather than disappearing into private safes.
Dr Musa Nakorji, Director of the Trade and Exchange Department, warned that compliance is not optional. IMTOs are required to maintain meticulous records for “regulatory review and audit purposes,” with a strict emphasis on Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) standards. The bank believes that by tightening the leash on these operators, it can curb the speculative activities that have historically weakened the local currency. For the average Nigerian, this means the era of receiving “Dollar cash” at the counter is effectively over.
The success of this May 1 rollout will depend on the stability of the official exchange rate. If the gap between the official BMATCH price and the parallel market rate widens, the CBN risks driving remittances back underground. However, if the market remains unified, this policy could provide the steady stream of foreign exchange the Naira needs to find a sustainable floor. The apex bank is betting that “Naira-only” is the final step in reclaiming control over Nigeria’s most consistent source of foreign capital.