The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) to open and maintain naira settlement accounts with authorised dealer banks, in a decisive move to tighten oversight of diaspora remittances and improve transparency in the foreign exchange (FX) market. The new rule is part of broader efforts to strengthen financial monitoring and ensure that cross-border inflows are properly tracked within the formal banking system.
The directive, issued in a circular dated March 24, 2026, was signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, and made public on the apex bank’s website. It applies to IMTOs, authorised dealer banks, and other stakeholders, signaling a coordinated push to enhance accountability across Nigeria’s remittance ecosystem.
Under the new guidelines, all IMTO transactions—including inflows, beneficiary payments, and settlements—must now be processed strictly through designated naira settlement accounts held with authorised dealer banks. While operators are allowed to maintain multiple accounts across different banks, they are required to ensure that every transaction is routed through these official channels, eliminating informal or opaque processes.
The CBN also introduced tighter controls on how these accounts are funded, restricting credits to remittance inflows and proceeds from foreign exchange conversions carried out within Nigeria’s FX market. In addition, IMTOs must submit account details to the central bank and provide regular updates. To improve pricing transparency, the apex bank directed operators to benchmark exchange rates using the Bloomberg BMatch system, a move expected to reduce information gaps and promote fairer pricing in the market.
The directive, which takes effect from May 1, 2026, underscores the CBN’s commitment to curbing money laundering and strengthening regulatory compliance. By channeling diaspora remittances through formal banking systems, the central bank aims to improve FX liquidity, enhance market confidence, and ensure that all operators adhere to anti-money laundering and counter-terrorism financing regulations.
source: nairametrics