CBN Mandates IMTOs to Open Naira Settlement Accounts

The Central Bank of Nigeria (CBN) has issued a directive requiring International Money Transfer Operators (IMTOs) to open Naira settlement accounts with Authorised Dealer Banks. This measure, announced by Dr. Musa Nakorji, Director of the Trade and Exchange Department, is part of a broader strategy to enhance the traceability of remittance flows and strengthen compliance within Nigeria's foreign exchange market.

The initiative is set to take effect on May 1, 2026, and aims to formalize remittance inflows while improving market efficiency. The CBN's circular mandates that IMTOs ensure transactions are routed through these designated settlement accounts, which will be maintained by Authorised Dealer Banks.

The directive also emphasizes the importance of adhering to existing regulatory guidelines and aims to improve price discovery and reduce information asymmetry in the market. This move is expected to bolster Nigeria's foreign exchange economy and enhance the overall efficiency of the foreign exchange market.