Nume Ekeghe
As part of new measures to deepen diaspora remittances and enhance transparency in the foreign exchange market, the Central Bank of Nigeria (CBN) has directed International Money Transfer Operators (IMTOs) to open naira settlement accounts with authorised dealer banks.
In a circular issued by the apex bank, which was signed by the Director of Trade and Exchange Department, Dr. Musa Nakorji, the directive forms part of broader efforts to improve traceability of remittance flows, strengthen compliance, and boost efficiency in Nigeria’s FX ecosystem.
Additionally, the CBN also rolled out new measures to boost diaspora remittance inflows and improve transparency in the foreign exchange market, alongside tighter operational rules for International Money Transfer Operators (IMTOs) and Authorised Dealer Banks (ADBs).
The circular stated: “As part of measures to enhance diaspora remittances, strengthen transparency, traceability, and effective monitoring of all transactions, this circular is hereby issued accordingly, all IMTOs, ADBs and the general public are required to note the following: All IMTOs are hereby directed to open Naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts, maintained with Authorised Dealer Banks (ADBs) in Nigeria.
“This means that all transactions arising from international money transfer operations, including disbursements to beneficiaries and any related settlements, must be processed exclusively through the IMTO’s settlement accounts) held with any ADB of their choice. “IMTOs may use their discretion to designate their existing accounts or open new settlement accounts and may operate accounts with multiple ADBs in line with their business strategy.”
The directive which takes effect from May 1, 2026, reinforces the CBN’s push to formalise remittance inflows and strengthen a key source of foreign exchange for the economy.
It added: “Settlement accounts shall only be credited with remittance flows and proceeds of foreign exchange conversions by licensed IMTOs (or their agents) with authorised market participants in the Nigerian Foreign Exchange Market (NFEM).
“IMTOs shall ensure that their settlement accounts are properly designated for this purpose and operated in accordance with existing regulatory guidelines. A list of designated settlement accounts shall be advised by each licensed IMTO to the Director, Trade and Exchange Department, and updated regularly as necessary.
“In order to support market efficiency and enhance pricing outcomes for IMTO transactions, ADBs may process foreign currency transfers from IMTO settlement accounts to other ADBs and approved market participants, including licensed BDCs.
“IMTOs shall observe real-time market prices from the Bloomberg BMATCH and utilise this as guidance for pricing transactions with their customers and Authorised Dealers. This will improve price discovery. Reduce information asymmetry between IMTOs and banks. Encourage increased participation in the official FX market.”
