The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) operating in the country to open and maintain naira settlement accounts with authorised dealer banks, in a move aimed at tightening oversight of diaspora remittances and improving transparency in the foreign exchange market.
The directive was contained in a circular dated March 24, 2026, signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji, and addressed to IMTOs, authorised dealer banks, and the general public.
The circular was published on the CBN’s website on Tuesday.
What the circular is saying
According to the apex bank, the measure forms part of efforts to “enhance diaspora remittances, strengthen transparency, traceability, and effective monitoring of all transactions.”
- The CBN stated that “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 inflows, disbursements to beneficiaries, and related settlements tied to international money transfers must now be processed exclusively through these accounts. IMTOs are also allowed to maintain multiple settlement accounts across different banks in line with their operational strategies.
Tighter controls on remittance flows
The new framework further restricts how these settlement accounts can be funded, stating that they “shall only be credited with remittance flows and proceeds of foreign exchange conversions by licensed IMTOs (or their agents)” operating within the Nigerian Foreign Exchange Market.
- In addition, IMTOs are required to properly designate these accounts and submit details to the CBN, with periodic updates as necessary.
- To improve market efficiency, the central bank also granted authorised dealer banks the ability to process foreign currency transfers from IMTO settlement accounts to other banks and approved participants, including licensed Bureau De Change operators.
- The CBN also introduced pricing guidelines, directing IMTOs to benchmark their rates using the Bloomberg BMatch system. According to the circular, 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.”
- The bank noted that this would “improve price discovery, reduce information asymmetry between IMTOs and banks, and encourage increased participation in the official FX market.”
Compliance deadline and regulatory expectations
The apex bank emphasised that all operators must maintain proper transaction records for regulatory review and ensure full compliance with anti-money laundering, counter-terrorism financing, and counter-proliferation financing requirements.
- “This directive takes effect from May 1, 2026. Please note and ensure compliance,” the circular stated.
The move signals a further push by the CBN to channel diaspora remittances through formal banking channels, improve liquidity in the official FX market, and strengthen regulatory visibility over cross-border inflows into Nigeria.
What you should know
- The directive builds on recent reforms by the CBN to formalise diaspora remittance inflows and reduce leakages in the foreign exchange market. Nigeria receives over $20bn annually in diaspora remittances, making it one of Africa’s largest recipients, but a significant share has historically flowed through informal channels.
- By mandating naira settlement accounts, the CBN is effectively centralising visibility over remittance inflows. This allows regulators to track the full lifecycle of transactions, from inflow to final disbursement, which is critical for tackling illicit financial flows and improving data accuracy.
- The requirement to benchmark rates using the Bloomberg BMatch system signals a push towards market-reflective pricing. This is expected to narrow the gap between official and parallel market rates by improving transparency and reducing arbitrage opportunities.
