Nduka Chiejina (Assistant Editor)
The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) to open Naira settlement accounts with authorised dealer banks in the country and channel all transactions through such accounts.
The directive, which takes effect from May 1, 2026, is aimed at improving transparency in remittance inflows and strengthening confidence in the foreign exchange market.
In a circular signed by Dr Musa Nakoji, Director of the Trade and Exchange Department, the apex bank stated that all transactions related to international money transfers must be processed strictly through designated settlement accounts.
“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 authorised dealer bank of their choice,” the circular read.
The CBN clarified that IMTOs may either utilise existing accounts or open new ones for this purpose. It also noted that operators are permitted to maintain multiple settlement accounts across different banks, depending on their operational requirements.
It added that these settlement accounts will be strictly reserved for remittance inflows and proceeds from foreign exchange conversions carried out by licensed operators and their agents in the Nigerian Foreign Exchange Market.
The circular further directed IMTOs to properly designate these accounts and submit a list of them to the CBN’s Trade and Exchange Department, with regular updates to ensure effective supervision.
As part of efforts to improve efficiency in the foreign exchange market, the apex bank said authorised dealer banks may process foreign currency transfers from IMTO settlement accounts to other banks and approved market participants, including licensed Bureau De Change operators.
The CBN also instructed IMTOs to align their transaction pricing with real-time market rates obtained from Bloomberg’s BMATCH platform.
The bank said this step would “improve price discovery, reduce information asymmetry between IMTOs and banks, and encourage increased participation in the official foreign exchange market.”
The new directive builds on earlier reforms introduced by the CBN on January 31, 2024, which provided updated guidelines for the licensing and operations of international money transfer services in Nigeria.
The apex bank stressed that all IMTOs must comply fully with the new rules and maintain proper records of their transactions for regulatory checks and audit purposes.
It also reminded operators to continue to meet required standards on anti-money laundering, combating the financing of terrorism, and counter-proliferation financing, as part of efforts to safeguard the integrity of Nigeria’s financial system.
The move is part of broader efforts by the CBN to strengthen foreign exchange inflows from Nigerians in the diaspora, improve transparency in the system, and ensure that remittance transactions contribute more effectively to the country’s economic stability.
