The Central Bank of Nigeria (CBN) has issued a new directive requiring all International Money Transfer Operators (IMTOs) operating in the country to open and maintain naira settlement accounts with authorised dealer banks.
The circular, dated March 24, 2026, and signed by Dr Musa Nakorji, Director of the Trade and Exchange Department, was published on the CBN website on March 25, 2026. It aims to enhance transparency, traceability, and effective monitoring of diaspora remittances while strengthening oversight of the foreign exchange market.
Under the new rule, all inflows, disbursements to beneficiaries, and related settlements from international money transfers must now be routed exclusively through these designated naira settlement accounts. IMTOs are permitted to maintain multiple accounts across different banks to suit their operational needs.
The CBN further specified that these settlement accounts can only be credited with remittance inflows and proceeds from foreign exchange conversions carried out by licensed IMTOs or their agents within the Nigerian Foreign Exchange Market. IMTOs are required to properly designate the accounts and submit their details to the CBN, with periodic updates as necessary.
To improve market efficiency and price discovery, authorised dealer banks have been granted the flexibility to process foreign currency transfers from IMTO settlement accounts to other banks and approved participants, including licensed Bureau de Change operators. The circular also instructs IMTOs to benchmark their transaction rates using real-time prices from the Bloomberg BMatch system, aiming to reduce information asymmetry and encourage greater participation in the official FX market.
The directive takes effect from May 1, 2026, and all operators must maintain proper records for regulatory review while ensuring full compliance with anti-money laundering, counter-terrorism financing, and counter-proliferation financing requirements.
This policy represents a significant step by the CBN to channel more diaspora remittances through the formal banking system, boost liquidity in the official foreign exchange market, and increase regulatory visibility over cross-border money flows into Nigeria. It is expected to reduce leakages, improve transparency, and support overall macroeconomic stability.
The move aligns with the apex bank’s broader efforts to strengthen the integrity of the foreign exchange market and promote a more structured and accountable remittance ecosystem.
