In a fresh move to strengthen diaspora inflows and improve transparency in the foreign exchange market, the Central Bank of Nigeria (CBN) has directed International Money Transfer Operators (IMTOs) to open and operate naira settlement accounts with authorised dealer banks.
The directive, contained in a circular issued by the apex bank’s Trade and Exchange Department and signed by its Director, Dr. Musa Nakorji, forms part of broader reforms aimed at enhancing traceability, compliance, and efficiency in Nigeria’s FX ecosystem.
Under the new guidelines, all IMTO transactions—including disbursements to beneficiaries and related settlements—must be routed strictly through designated naira settlement accounts held with authorised dealer banks. IMTOs are allowed to either designate existing accounts for this purpose or open new ones, and may maintain multiple accounts in line with their operational strategy.
The policy, which takes effect from May 1, 2026, reinforces the CBN’s ongoing efforts to formalise remittance flows and maximise a critical source of foreign exchange for the Nigerian economy.
According to the circular, the settlement accounts will be used exclusively for remittance inflows and proceeds from foreign exchange conversions carried out through authorised market participants in the Nigerian Foreign Exchange Market (NFEM). IMTOs are also required to notify the CBN of their designated accounts and update the list regularly.
In addition, authorised dealer banks have been empowered to process foreign currency transfers from these settlement accounts to other banks and approved market participants, including licensed Bureau de Change operators, to improve liquidity and market efficiency.
To further enhance transparency and price discovery, the CBN directed IMTOs to adopt real-time market rates from Bloomberg’s BMATCH platform as a benchmark for pricing transactions. The move is expected to reduce information asymmetry between operators and banks while encouraging greater participation in the official FX market.
The new framework introduces tighter operational controls for IMTOs and authorised dealer banks, reflecting the apex bank’s broader strategy to deepen the foreign exchange market, improve oversight, and boost confidence among diaspora investors and remittance senders.