In a bid to strengthen the Naira and ensure transparency, traceability, and effective monitoring of all transactions, the Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) in the country to open Naira settlement accounts for all transactions.
In a circular dated Tuesday, March 24, 2026, the apex bank said IMTOs have till May 1, 2026, to fully adhere to this directive and others.
It noted that transactions must be “routed strictly through their designated settlement accounts, maintained with Authorised Dealer Banks (ADBs) in Nigeria.”
With this development, diaspora remittances must be paid to beneficiaries in the local currency.
“All transactions arising from international money transfer operations, including disbursements to beneficiaries and any related settlements, must be processed exclusively through the IMTO’s settlement account(s) held with any ADB of their choice.
“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 central bank emphasised.
“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 notice also declared.
It stressed further that, “IMTOs shall ensure that their settlement accounts are properly designated for this purpose and operated in accordance with existing regulatory guidelines. A list of designated settlement accounts shall be advised by each licensed 1MTO to the Director, Trade and Exchange Department, and updated regularly as necessary.”
The CBN said to “support market efficiency and enhance pricing outcomes for 1MTO transactions, ADBs may process foreign currency transfers from 1MTO settlement accounts to other ADBs and approved market participants, including licensed BDCs.”
“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 1MTOs and banks, and encourage increased participation in the official FX market,” the disclosure stated.
Concluding, the apex bank said, “All IMTOs are required to ensure full compliance with this directive and maintain adequate records of related transactions for regulatory review and audit purposes,” reminding them to “maintain acceptable standards and comply with AML/CFT/CPF requirements.”