CBN Mandates Naira Settlement Accounts for IMTOs

The Central Bank of Nigeria (CBN) has issued a directive requiring International Money Transfer Operators (IMTOs) to open and maintain naira settlement accounts with authorized dealer banks. This measure, outlined in a circular dated March 24, 2026, and signed by Dr. Musa Nakorji, Director of the Trade and Exchange Department, aims to tighten oversight of diaspora remittances and improve transparency in the foreign exchange market.

The new rule mandates that all transactions be routed through these designated settlement accounts, which must be maintained by authorized dealer banks in Nigeria. Additionally, IMTOs are required to adopt market-reflective pricing based on the Bloomberg Bmatch system and ensure compliance with anti-money laundering and counter-terrorism financing regulations.

This directive is set to take effect on May 1, 2026, as part of the CBN's efforts to channel remittance inflows through formal banking channels, thereby enhancing liquidity in the official foreign exchange market. Notably, IMTO inflows to Nigeria fell by 11.78% in the first half of 2025 compared to the previous year.