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Nigeria tightens rules for international money transfers starting May 2026

A major shift in Nigeria's remittance policy could reshape how billions in diaspora funds flow into the country. Will stricter oversight curb informal transfers?

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Nigeria tightens rules for international money transfers starting May 2026

The Central Bank of Nigeria (CBN) has introduced new rules for international money transfers. From May 1, 2026, all International Money Transfer Operators (IMTOs) must open and maintain naira settlement accounts with authorised dealer banks in the country. The move aims to increase transparency and strengthen oversight of diaspora remittances flowing into Nigeria. Before this directive, 14 major money transfer services—including Western Union, MoneyGram, and WorldRemit—were already working with Nigerian banks licensed for foreign exchange trading. The CBN's latest policy now requires all IMTOs to route transactions exclusively through their designated settlement accounts with these Authorised Dealer Banks (ADBs).

The new rules also restrict how these accounts can be used. Settlement accounts may only receive remittance inflows and proceeds from foreign exchange conversions by licensed IMTOs. Authorised dealer banks, however, can transfer foreign currency from these accounts to other banks or approved participants. IMTOs must designate their settlement accounts and report details to the CBN, updating them as needed. They can open multiple accounts across different banks, depending on their operational needs. Additionally, the CBN has mandated that IMTOs use the Bloomberg BMatch system to benchmark their transaction rates. The policy is designed to channel more diaspora remittances through formal banking systems. This is expected to boost liquidity in Nigeria's official foreign exchange market and give regulators clearer visibility over cross-border inflows.

The directive takes effect on May 1, 2026. By requiring IMTOs to use designated settlement accounts, the CBN seeks to improve transparency and ensure remittances flow through regulated channels. The changes also aim to strengthen the official foreign exchange market by increasing liquidity and oversight.

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