The Central Bank of Nigeria (CBN) has announced new measures aimed at deepening diaspora remittances and improving transparency in the country’s foreign exchange market.
In a circular issued by the apex bank and signed by the Director of Trade and Exchange Department, Dr. Musa Nakorji, the CBN directed all International Money Transfer Operators (IMTOs) to open Naira settlement accounts with authorised dealer banks (ADBs).
The move is part of broader efforts to strengthen traceability, compliance, and operational efficiency in Nigeria’s foreign exchange ecosystem.
The circular outlined: “As part of measures to enhance diaspora remittances, strengthen transparency, traceability, and effective monitoring of all transactions, all IMTOs, ADBs, and the general public are required to note the following: All IMTOs are hereby directed to open Naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts maintained with Authorised Dealer Banks in Nigeria.
“This means that 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 accounts held with any ADB of their choice.
”IMTOs may use their discretion to designate existing accounts or open new settlement accounts and may operate accounts with multiple ADBs in line with their business strategy.”
The directive, which takes effect from May 1, 2026, reinforces the CBN’s drive to formalise remittance inflows and strengthen one of Nigeria’s key sources of foreign exchange.
According to the circular: ”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).
”IMTOs shall ensure that their settlement accounts are properly designated and operated in accordance with existing regulatory guidelines.
“A list of designated settlement accounts shall be submitted by each licensed IMTO to the Director, Trade and Exchange Department, and updated regularly as necessary.
”In order to support market efficiency and enhance pricing outcomes for IMTO transactions, ADBs may process foreign currency transfers from IMTO settlement accounts to other ADBs and approved market participants, including licensed BDCs.”
The CBN further instructed IMTOs to observe real-time market prices from the Bloomberg BMATCH platform as guidance for pricing transactions.
This initiative is intended to improve price discovery, reduce information gaps between IMTOs and banks, and encourage greater participation in the official foreign exchange market.
