CBN Bans Foreign Currency on Diaspora Remittances, Mandates Naira Settlement Accounts from May 1

The Central Bank of Nigeria has directed all International Money Transfer Operators to open and maintain naira settlement accounts with authorised dealer banks. This move aims to boost transparency and oversight in the foreign exchange market. Under the March 24 circular signed by Musa Nakorji, IMTOs must route all remittance inflows, beneficiary payments and related settlements exclusively through these naira accounts. Operators may have multiple accounts, but each must be clearly designated and details submitted to the CBN. Accounts can only be funded by diaspora remittances or proceeds from currency conversions carried out by licensed IMTOs or their agents. The CBN also requires IMTOs to adopt market-reflective pricing using real-time rates from a recognised trading system. Authorised dealer banks may process foreign currency transfers from these accounts to other banks and licensed Bureau De Change operators. The directive stresses proper transaction records and full compliance with anti-money laundering and counter-terrorism financing rules. It takes effect May 1, 2026.

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