NEWS
CBN Mandates Naira Settlement Accounts for International Money Transfer Operators to Boost Transparency, Traceability, and Market Efficiency
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, in a major push to enhance transparency, oversight, and efficiency in the nation’s foreign exchange (FX) market.
The directive, contained in a circular dated March 24, 2026, was signed by Musa Nakorji, Director of the Trade and Exchange Department, and addressed to IMTOs, authorised dealer banks, and the general public. The new policy marks a significant regulatory step aimed at strengthening the monitoring and traceability of remittance transactions into Nigeria.
According to the CBN, the policy requires all IMTOs to route their international money transfer transactions exclusively through designated Naira settlement accounts held with authorised dealer banks in Nigeria. The measure covers all inflows, beneficiary payments, and related settlements linked to international remittances. The apex bank said the initiative is designed to enhance diaspora remittances, ensure more accurate transaction tracking, and promote participation in the official FX market.
IMTOs are allowed to operate multiple settlement accounts across different banks, provided each account is clearly designated and details are submitted to the CBN, with periodic updates whenever necessary. The accounts may only be funded through remittance inflows and proceeds from foreign exchange conversions carried out by licensed IMTOs or their agents within Nigeria’s official FX market.
To improve price transparency and market efficiency, the CBN directed IMTOs to adopt market-reflective pricing using the Bloomberg BMatch system as a reference. Operators are expected to use real-time market prices when dealing with customers and authorised dealer banks, a move intended to improve price discovery, reduce information gaps, and encourage greater participation in the official FX market.
The circular also clarifies the role of authorised dealer banks, allowing them to process foreign currency transfers from IMTO settlement accounts to other banks and approved participants, including licensed Bureau De Change operators.
The CBN stressed that all operators must maintain proper transaction records for regulatory inspections and adhere strictly to anti-money laundering (AML) and counter-terrorism financing (CTF) rules.
The directive is set to take effect from May 1, 2026, with the apex bank urging all stakeholders to ensure full compliance. This regulatory overhaul is expected to boost transparency in the remittance ecosystem, secure Nigeria’s FX market, and provide greater confidence for both diaspora remitters and local financial institutions.