By Segun Otokiti
WorldStage– The Central Bank of Nigeria (CBN) has mandated that all diaspora remittances through International Money Transfer Operators (IMTOs) be paid strictly in Naira, effective from May 1, 2026.
This directive, issued on Tuesday, March 24, 2026, aims to improve transparency and deepen liquidity in the official foreign exchange market.
All IMTOs, according to the apex bank, must open and maintain dedicated Naira settlement accounts with Authorised Dealer Banks (ADBs) to process all inbound transfers.
Beneficiaries will no longer have the option to receive remittances in US Dollars or other foreign currencies, whether in cash or via domiciliary accounts.
IMTOs are now required to use real-time market rates from the Bloomberg BMatch system to determine exchange rates for their customers.
Payouts exceeding the equivalent of $200 must be credited directly to the recipient’s bank account while cash payments for amounts below $200 require valid identification (e.g., International Passport, National ID, or BVN).
These recent directives build upon the revised guidelines first introduced in January 2024 explicitly excluded financial technology companies and are prohibited from obtaining IMTO licenses to ensure transfers are routed through traditional banking channels.
The rules capped application fee for an IMTO license at N10,000,000, with a mandatory annual renewal fee of the same amount due by January 31 each year.
CBN stated that foreign IMTOs must maintain a minimum share capital of $1 million, while indigenous firms must have the Naira equivalent.
According to the apex bank, IMTOs are restricted to facilitating inbound money transfers only; outbound services are currently not permitted under this license.
