There was a feature request for this at Restore from remote backups
It looks like the Restore From Remote Backups
feature request was closed based on the inclusion of this feature in cPanel & WHM version 80. Since support for this feature is limited to the FTP remote destination type, I recommend opening a separate feature request for the specific remote destination type you'd like to see this feature expanded with (e.g. SFTP). Let me know the feature request URL once it's opened and I'll ensure to encourage others to vote for it whenever the topic is mentioned.
It still shows "The system cannot restore backups because it does not store those backups locally".
You can still perform this task, however we recommend using the command line to do this since the command line is the most common method used to manually transfer the backup archives to the server. You'd follow the steps listed under "Step 6" on the document linked below instead of using WHM >> Backup Restoration
Full Disaster Recovery - cPanel Knowledge Base - cPanel Documentation
Here are the commands you can use if you need to restore backups for all accounts:
for archive in `ls`; do /scripts/restorepkg $archive; done
Note you can still use WHM >> Backup Restoration
if you prefer, however to use this feature you must first enable the Retain Backups in the Default Backup Directory
setting in WHM's Backup Configuration
(WHM >> Home >> Backup >> Backup Configuration
) interface. Then, once you've moved the backups to the correct location and restored them, open WHM >> Backup Configuration
, adjust the Retain Backups in the Default Backup Directory
setting to it's previous state, and then remove the backup archives from the location you moved them to.