Why CBN Mandates IMTOs to Open Naira Settlement Accounts

The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators to open and maintain dedicated Naira settlement accounts with Nigerian banks.

Aiming to improve oversight of diaspora remittances, and strengthen foreign exchange liquidity, the directive, contained in a circular dated March 24, 2026, requires all IMTOs transactions in Nigeria to pass through these accounts.

The apex bank said the measure is part of its strategies to channel remittance inflows into the official foreign exchange market.

Signed by Dr Musa Nakorji, director of the Trade and Exchange Department, the circular ties into earlier guidelines issued on January 31, 2024, which set out the framework for licensing and operations of IMTOs in Nigeria.

“The Central Bank of Nigeria on January 31, 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”, the circular read in parts.

Closing the Informal Channels

Under the new regulations, all inflows and payouts linked to international money transfers must be routed strictly through designated settlement accounts held with Authorised Dealer Banks (ADBs).

“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,” the CBN stated.

The bank also clarified that these accounts can only be funded through legitimate remittance inflows and proceeds from foreign exchange conversions.

“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),” the statement added.

To support operational flexibility, IMTOs are allowed to operate multiple settlement accounts across different banks.

“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 bank said.

Real-Time Pricing: The End of Guesswork

The CBN also introduced a pricing guideline requiring IMTOs to reference real-time rates from the Bloomberg BMatch system when setting exchange rates.

“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,” the statement added.

The development is expected to reduce wide rate disparities and improve transparency in how exchange rates are determined for remittances.

Compliance Deadline

The apex bank gave IMTOs until May 1, 2026, to comply with the new requirements. Operators are also required to maintain proper records in line with anti-money laundering and counter-terrorism financing regulations.

“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/CPF requirements,” the statement further added.

For Nigerians receiving money from abroad, the policy is expected to improve transparency and possibly narrow the gap between official and parallel market exchange rates.

For the economy at large, it is part of a goal to increase dollar supply within the formal system and improve stability in the foreign exchange market.

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