The Central Bank of Nigeria has directed that all diaspora remittances to beneficiaries in Nigeria be paid strictly in naira, ending the collection of funds in dollars or other foreign currencies.

The new policy, which takes effect from May 1, requires all International Money Transfer Organisations (IMTOs) to open naira settlement accounts and route all remittance transactions through them.

In a circular signed by Musa Nakorji, the apex bank said the directive covers all international money transfer transactions, including disbursements to recipients and related settlements.

“All IMTOs are hereby directed to open naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts,” the statement read.

The CBN explained that the move is aimed at deepening diaspora remittances while improving transparency, traceability, and monitoring of foreign exchange flows into the country.

Under the new framework, IMTOs may operate multiple settlement accounts across authorised dealer banks and must notify the CBN of all such accounts, providing updates when necessary.

To enhance efficiency in the foreign exchange market, authorised dealer banks will be allowed to process foreign currency transfers from these accounts to other approved participants, including bureau de change operators.

On pricing, the apex bank instructed IMTOs to align their rates with real-time market prices on Bloomberg’s BMatch platform to improve price discovery and reduce information gaps.

The regulator also emphasised strict compliance with anti-money laundering and counter-terrorism financing regulations, requiring operators to maintain proper records for audit and oversight.

The directive builds on earlier reforms introduced in 2024 and forms part of broader efforts by the CBN to strengthen foreign exchange inflows, improve market transparency, and enhance the stability of Nigeria’s financial system.