The Central Bank of Nigeria (CBN) has introduced new rules aimed at improving how money sent from abroad (diaspora remittances) enters and circulates within the Nigerian financial system.
The directive, which takes effect from May 1, 2026, is targeted at International Money Transfer Operators (IMTOs), banks, and other players in the foreign exchange market.
For everyday Nigerians receiving money from abroad, the changes are expected to lead to more transparent exchange rates and potentially better value. For the financial system, the policy is aimed at channeling more foreign exchange into official markets, reducing leakages, and improving overall confidence in the system.
Read also:CBN mandates IMTOs to use naira settlement accounts for diaspora inflows
Here’s what the apex bank is saying
All transactions must be routed through Nigerian banks
Under the new rule, all IMTOs must process their transactions through special Naira accounts held with Nigerian banks, known as Authorised Dealer Banks (ADBs). This means that every payment to a beneficiary in Nigeria, as well as any related transaction, must pass through these designated accounts. IMTOs are allowed to choose which banks to work with and can operate multiple accounts depending on their business needs.
Limiting what goes into these accounts
The CBN has specified that these settlement accounts can only receive funds from diaspora remittances and proceeds from foreign exchange conversions done through approved market channels. In simple terms, the accounts are strictly for handling inbound remittance money and related FX transactions, not for other business activities.
Mandatory disclosure and monitoring
Each IMTO is required to formally inform the CBN of all the accounts it uses for settlement purposes and keep this information updated. This gives the regulator full visibility into how remittance funds are handled and helps strengthen oversight of the system.
More flexibility in moving foreign exchange within the system
The guidelines allow banks to transfer foreign currency from an IMTO’s settlement account to other banks or approved market participants, including Bureau De Change (BDCs).
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Using real market rates for transactions
IMTOs are now required to use real-time exchange rates from Bloomberg’s BMATCH system as a benchmark when pricing transactions. This is meant to ensure that customers get rates that reflect actual market conditions, reduce unfair pricing practices, and improve transparency across the system.
Strengthening trust and compliance
The CBN has emphasised that IMTOs must maintain proper records of all transactions and comply with anti-money laundering and counter-terrorism financing regulations. This is part of a broader push to ensure that remittance flows are not only efficient but also secure and compliant with global standards.
