For Nigerians receiving money from relatives abroad, sending $500 home now works differently from before.
Since May 1, 2026, the Central Bank of Nigeria (CBN) has required International Money Transfer Operators (IMTOs) to process remittance transactions through designated settlement accounts held with authorised dealer banks. The directive covers beneficiary payments and related settlements and is intended to strengthen transparency, traceability and oversight of diaspora inflows.
For recipients, the practical effect is significant: remittances processed through the regulated IMTO framework are paid in naira, rather than allowing beneficiaries to collect the incoming foreign currency through the traditional cash-pickup route.
That means a relative sending $500 does not simply hand the recipient a $500 note. The recipient gets the naira equivalent after the foreign currency is converted within the regulated settlement process.
IMTOs must observe real-time market prices from Bloomberg BMATCH and use those prices as guidance when pricing transactions with customers and authorised dealers. The central bank says the arrangement should improve price discovery, the process through which market transactions establish prices, reduce information gaps and encourage greater participation in Nigeria’s official foreign-exchange market.
The rule does not mean every recipient will receive an identical rate across all operators. The amount ultimately received can still depend on the operator’s pricing, applicable charges and the prevailing market conditions.
Remittances are an increasingly important source of foreign exchange for Nigeria. In July, CBN Governor Olayemi Cardoso said monthly diaspora inflows had risen above $600 million and projected that the figure could reach $1 billion a month by the end of 2026.
The policy is therefore about more than how families receive money. By keeping transactions inside regulated channels, the CBN wants greater visibility over foreign-exchange flows and stronger participation in the formal market.
The CEO of 91 Payments, Pelumi Esho, said the new process could create funding gaps between currency conversion and final payout because banks may process some settlements in batches. That can expose smaller IMTOs to currency and liquidity risks.
For families, however, the policy will ultimately be judged much more simply: how many naira does that $500 produce, what fees are deducted, and how quickly does the money arrive?
Those three factors will determine whether the CBN’s effort to move more remittances into formal channels strengthens confidence, or pushes price-sensitive senders towards alternatives outside the regulated system.
