No more dollar payouts? CBN orders IMTOs to switch to Naira settlement accounts

Nigeria’s remittance landscape is heading for a major shake-up after the Central Bank of Nigeria (CBN) directed all International Money Transfer Operators (IMTOs) to open and maintain naira settlement accounts with authorised dealer banks, in a fresh move aimed at tightening oversight of diaspora inflows and deepening liquidity in the official foreign exchange market.

The new directive, which takes effect from May 1, 2026, requires all remittance-related transactions, including beneficiary disbursements and related settlements, to be processed exclusively through designated naira settlement accounts. The policy is being seen as one of the CBN’s most significant remittance reforms in recent months, with potential implications for diaspora inflows, dollar remittance payouts, FX transparency, and the naira’s stability.

The apex bank said the move is designed to improve transparency, traceability, and monitoring in the remittance ecosystem, while also ensuring that more foreign exchange enters the formal banking system rather than leaking into opaque or less traceable channels.

CBN’s New IMTO Rule: What Exactly Has Changed?

Under the new circular, all International Money Transfer Operators operating in Nigeria must either designate existing naira accounts or open new ones with any authorised dealer bank of their choice. From May 1, 2026, all transactions tied to international money transfers, including remittance inflows, beneficiary payouts, and settlement processes, must move strictly through these accounts.

The CBN also clarified that IMTOs can maintain multiple settlement accounts across different banks, depending on operational needs. However, those accounts must be used solely for remittance inflows and proceeds from foreign exchange conversions carried out by licensed operators and their agents within the Nigerian FX market. IMTOs are also required to formally designate the accounts and submit the list to the CBN’s Trade and Exchange Department, with updates provided regularly for supervision.

In simple terms, the regulator wants every major remittance transaction to be more visible, easier to track, and fully captured inside the banking system.

Will Nigerians Still Receive Dollar Remittances? What the New Policy Means

One of the biggest questions Nigerians are asking is whether the policy effectively ends dollar cash payouts for diaspora remittances.

Several reports interpreting the circular say the directive means recipients will increasingly receive remittance value in naira through the formal banking system, rather than through direct dollar payouts that have historically been common in some channels. TVC News and TheCable both framed the policy as a shift toward naira-denominated settlement and payout structures, with TheCable explicitly stating that the rule would end the era of dollar payments to many beneficiaries from May.

However, the clearest regulatory wording available in the cited reports focuses on settlement and processing mechanics rather than a standalone sentence saying “all beneficiaries must only be paid in naira.” That means the practical effect strongly points toward naira settlement dominance, but the exact consumer-facing payout format may depend on how authorised banks and IMTOs operationalise the rule. For publishers, the safest phrasing is: the CBN is pushing remittance settlement firmly into naira-based banking channels, which is expected to significantly reduce or phase out direct dollar payout structures.

Why the CBN Is Tightening Control Over Diaspora Remittances

The CBN says the new policy is part of a broader strategy to enhance diaspora remittances, strengthen transparency, improve traceability, and ensure effective monitoring of all transactions in the remittance space. This aligns with the regulator’s wider push to stabilise the foreign exchange market and improve confidence in official FX channels.

BusinessDay noted that the new rule is intended to close gaps that previously allowed funds to move through less traceable channels, while also helping to channel more FX inflows into the official market instead of the parallel market. By capturing more remittance flows inside the banking system, the CBN is effectively trying to boost supply, curb leakages, and improve market efficiency.

This matters because diaspora remittances remain one of Nigeria’s most important sources of foreign exchange, especially during periods of market volatility or pressure on external reserves.

Bloomberg BMatch: The New Pricing Benchmark for IMTOs

Another major part of the new rule is the CBN’s directive that IMTOs must align transaction pricing with real-time market rates sourced from Bloomberg BMatch.

The apex bank said this is meant to improve price discovery, reduce information asymmetry between banks and transfer operators, and encourage greater participation in the official foreign exchange market. In practical terms, this means remittance conversion pricing should more closely reflect real-time market conditions instead of being based on opaque or inconsistent internal pricing structures.

For Nigerians sending or receiving money from abroad, this could eventually lead to more transparent remittance conversion rates, although the real-world impact will depend on how quickly operators adjust their systems.

How Authorised Dealer Banks and BDCs Fit Into the New Framework

The CBN also said authorised dealer banks may process foreign currency transfers from IMTO settlement accounts to other banks and approved market participants, including licensed Bureau De Change (BDC) operators.

This is a notable detail because it suggests the regulator is not merely restricting remittance flows; it is also trying to improve liquidity distribution across the FX ecosystem. By allowing funds from IMTO settlement accounts to move through approved channels, the CBN appears to be creating a more structured way for diaspora FX to circulate within the formal market.

That could support the official market while reducing pressure on informal supply routes.

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Compliance Deadline: Why May 1, 2026 Matters

The new directive takes effect on May 1, 2026, giving IMTOs a short transition window to align their systems, designate accounts, update internal controls, and notify the CBN.

The central bank also reminded operators that they must maintain proper transaction records for audit and regulatory checks and continue to comply with anti-money laundering (AML), counter-terrorism financing (CFT), and counter-proliferation financing (CPF) standards. This reinforces the idea that the reform is not just about FX policy, it is also about regulatory discipline and financial system integrity.

The move builds on earlier revised IMTO guidelines issued on January 31, 2024, which had already updated the licensing and operational framework for international money transfer services in Nigeria.

Why This CBN Policy Could Matter for the Naira and the FX Market

The broader market significance of this directive lies in one word: liquidity.

By ensuring that remittance inflows are captured within the formal banking system, the CBN is trying to deepen supply in the official FX market, improve visibility over inflows, and potentially reduce the diversion of foreign exchange into the parallel market. BusinessDay specifically said the move is designed to deepen liquidity and support orderly market functioning.

If effectively enforced, the policy could:

• Increase official FX supply
• Improve remittance traceability
• Narrow room for parallel market leakages
• Support better pricing discipline
• Strengthen confidence in the naira settlement ecosystem

That said, the success of the policy will depend heavily on IMTO compliance, bank implementation, and how smoothly customers adapt to the new structure.

What Nigerians and Diaspora Senders Should Watch Next

For now, Nigerians at home and abroad should watch three things closely:

1. How banks and IMTOs communicate payout changes before May 1
2. Whether dollar cash or domiciliary-based remittance options narrow further
3. How exchange rates offered on remittance conversions compare under Bloomberg BMatch-linked pricing

The CBN’s message is clear: diaspora remittances must become more transparent, more traceable, and more useful to Nigeria’s formal FX market.

And with the May 1, 2026 deadline fast approaching, this policy is likely to become one of the most closely watched CBN forex reforms of the year.

 

 

FAQ

1. What is the new CBN directive for IMTOs in 2026?

The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) to open and maintain naira settlement accounts with authorised dealer banks in Nigeria. From May 1, 2026, all remittance transactions, including beneficiary disbursements and related settlements, must be processed through those accounts.

2. When does the CBN IMTO naira settlement account rule take effect?

The new rule takes effect on May 1, 2026. IMTOs have a short transition period before the deadline to align their operations, designate accounts, and notify the CBN.

3. What is a naira settlement account?

A naira settlement account is a bank account held with an authorised dealer bank that will be used by IMTOs to process remittance inflows, beneficiary payouts, and related settlement transactions under the new CBN framework. Under the directive, these accounts are reserved for remittance inflows and FX conversion proceeds.

4. Why did CBN order IMTOs to open naira settlement accounts?

The CBN said the move is designed to improve transparency, traceability, effective monitoring, and confidence in the foreign exchange market. It also aims to channel more diaspora remittance inflows into the formal banking system and reduce leakages into less traceable channels.

5. Will Nigerians still receive dollar remittances after May 1, 2026?

The policy strongly points toward naira-based settlement and payout structures, and some reports say it effectively ends widespread dollar payout practices for many beneficiaries. However, the clearest public wording in cited reports focuses on settlement through naira accounts, so the exact customer payout mechanics may depend on how banks and IMTOs implement the rule. The safest reading is that direct dollar payout options are likely to narrow significantly.

6. Can IMTOs use more than one bank account?

Yes. The CBN said IMTOs may maintain multiple naira settlement accounts across different authorised dealer banks, depending on their business needs.

7. What is Bloomberg BMatch and why is it important in this policy?

Bloomberg BMatch is the real-time pricing reference the CBN wants IMTOs to use for transaction pricing. The CBN says this will improve price discovery, reduce information asymmetry, and support greater participation in the official FX market.

8. How will the new CBN rule affect the naira?

The CBN hopes the rule will improve the formal capture of remittance inflows, deepen liquidity in the official FX market, reduce parallel market leakages, and support better pricing discipline. If enforced well, it could help strengthen confidence in the naira and improve market efficiency.

9. Are authorised dealer banks allowed to move funds from IMTO accounts?

Yes. Under the directive, authorised dealer banks may process foreign currency transfers from IMTO settlement accounts to other banks and approved market participants, including licensed Bureau De Change (BDC) operators.

10. Does this replace earlier IMTO rules?

The new directive builds on the revised guidelines for IMTO licensing and operations issued on January 31, 2024. It does not replace the entire framework publicly in the cited reports, but it adds new compliance and settlement measures to strengthen oversight.

11. What compliance obligations remain for IMTOs?

IMTOs must keep proper transaction records for audits and regulatory reviews and continue to comply with:

• Anti-money laundering (AML)
• Counter-terrorism financing (CFT)
• Counter-proliferation financing (CPF) standards

12. Why is this CBN story trending in Nigeria?

The story is trending because it directly affects diaspora remittances, dollar payouts, exchange rates, and the naira—issues that impact millions of Nigerians at home and abroad. It is also a major signal of how aggressively the CBN is trying to tighten control over the FX market in 2026.

13. What should Nigerians abroad do now?

Nigerians abroad should monitor:

• Their IMTO’s updated payout process
• Whether recipients will be credited in naira only
• The exchange rate used for conversions
• Bank notifications before the May 1, 2026 deadline

The most important step is to check with the sending platform or bank before initiating large transfers after the policy takes effect.

14. What should recipients in Nigeria do before May 1?

Recipients should:

• Confirm with their bank or transfer operator how payouts will be handled
• Ask whether remittances will land as naira credits
• Compare conversion rates before accepting transfers
• Watch for changes to bank alerts, transfer descriptions, or account credit formats

15. Is this good or bad for the Nigerian economy?

That depends on perspective. From a policy standpoint, the CBN sees it as positive because it could improve FX transparency, official market liquidity, and remittance traceability. For some consumers, however, it may be seen as less flexible if it reduces direct access to dollar remittances. The real impact will depend on implementation quality and market response.