CBN Directs IMTOs to Use Naira Settlement Accounts for Diaspora Remittances
- 2 days ago
- 2 min read
The Central Bank of Nigeria (CBN) has introduced a new directive requiring all International Money Transfer Operators (IMTOs) to channel diaspora remittances through designated naira settlement accounts held with authorised dealer banks across the country.
The policy, which takes effect from May 1, 2026, is part of broader efforts to strengthen oversight, improve transparency, and increase foreign exchange liquidity within the formal financial system.
Under the new guidelines, IMTOs must ensure that all remittance inflows, beneficiary payments, and related transactions are processed strictly through these approved banking channels. This effectively eliminates informal or less traceable routes previously used for remittance flows.
Operators are permitted to maintain multiple naira settlement accounts with different authorised dealer banks, depending on their operational needs. However, all inflows and proceeds from foreign exchange conversions must be credited exclusively into these accounts.
In a move to promote pricing transparency, the apex bank also instructed IMTOs to adopt real-time exchange rates referenced from Bloomberg BMatch for all transactions. This is expected to enhance price discovery, reduce disparities in exchange rates, and improve confidence in the official foreign exchange market.
Additionally, authorised dealer banks have been empowered to transfer funds from IMTO settlement accounts to other financial institutions and licensed bureau de change operators, a step aimed at improving liquidity distribution across the system.
The directive further reinforces compliance obligations, mandating IMTOs to maintain detailed transaction records and adhere strictly to anti-money laundering and counter-terrorism financing regulations.
By ensuring that remittance inflows are fully captured within the formal banking framework, the CBN aims to reduce leakages into the parallel market and stabilise the country’s foreign exchange environment.
The move underscores the regulator’s continued reliance on policy measures to strengthen the naira, boost investor confidence, and ensure a more efficient and transparent remittance ecosystem.
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