The Central Bank of Nigeria (CBN) has directed that all payouts from International Money Transfer Operators (IMTOs) shall be made in Naira, using the proceeds of foreign exchange conversions, effective May 1, 2026 The Central Bank of Nigeria, on 31st January, 2024, issued the revised guidelines for International money transfer……
The Central Bank of Nigeria (CBN) has directed that all payouts from International Money Transfer Operators (IMTOs) shall be made in Naira, using the proceeds of foreign exchange conversions, effective May 1, 2026
The Central Bank of Nigeria, on 31st January, 2024, issued the revised guidelines for International money transfer services in Nigeria, which provided a framework for the licensing and operations of International Money Transfer Operators (IMTOs) in the country.
In a notice issued on Wednesday, signed by Dr Musa Nakorji, the Director of the Trade and Exchange Department, CBN stated that the police form part of measures to enhance diaspora remittances, strengthen transparency, traceability and effective monitoring of all transactions.
According to the notice directed to all IMTOS, Authorised Dealer Banks (ADBs) and the general public, CBN insists that all international money operators must open a Naira settlement account to maintain the provisions of the framework.
CBN said, “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 account(s) 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.”
According to the notice, CBN explained that 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).
CBN further emphasised that IMTOs shall ensure that their settlement accounts are properly designated in accordance with the provisions of the framework’s purpose and existing regulatory guidelines.
The apex bank stressed that 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.
CBN added that “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.”
CBN directs IMTOs to observe real-time market prices from the Bloomberg BMATCH and utilise this as guidance for pricing transactions with their customers and Authorised Dealers, noting that the observation will improve price discovery, reduce information asymmetry between IMTOs and banks, and encourage increased participation in the official FX market.
CBN advised that all IMTOs are required to ensure full compliance with this directive and maintain adequate records of related transactions for regulatory review and audit purposes.
“IMTOs are reminded to maintain acceptable standards and comply with AML/CFT/CPH requirements,” the statement concluded.
