CBN Mandates Naira Settlement Accounts for International Money Transfers
The Central Bank of Nigeria has issued a new directive requiring all International Money Transfer Operators to establish and maintain naira settlement accounts with authorised dealer banks. This policy, detailed in a circular dated March 24, 2026, aims to improve transparency, monitoring, and efficiency within the foreign exchange market. The directive was signed by Musa Nakorji, Director of the Trade and Exchange Department, and communicated to IMTOs, authorised banks, and the general public.
Enhanced Transaction Processing and Compliance
Under the new regulations, all remittance-related transactions, including inflows, beneficiary payments, and settlements, must be processed exclusively through these designated naira settlement accounts. IMTOs are permitted to operate multiple accounts across different banks based on operational needs, provided the accounts are clearly designated and details are submitted to the CBN for periodic updates. Funding for these accounts is restricted to remittance inflows and proceeds from foreign exchange conversions conducted by licensed IMTOs or their agents in Nigeria.
Market Reforms and Pricing Adjustments
To foster greater efficiency, the CBN has directed IMTOs to adopt market-reflective pricing by referencing the Bloomberg BMatch system. This measure is expected to enhance price discovery, reduce information gaps between operators and banks, and encourage increased participation in the official foreign exchange market. Authorised dealer banks are also empowered to process foreign currency transfers from IMTO settlement accounts to other banks and approved participants, such as licensed Bureau De Change operators.
Regulatory Oversight and Implementation Timeline
The CBN emphasised that all operators must maintain proper transaction records for regulatory checks and comply with anti-money laundering and counter-terrorism financing rules. The directive is scheduled to take effect from May 1, 2026, with stakeholders urged to ensure full compliance. This move comes amid a decline in diaspora remittances, with data showing an 11.78% drop in IMTO inflows during the first half of 2025 compared to the same period in 2024, highlighting the need for enhanced regulatory measures.
Context and Broader Implications
The policy is part of broader efforts by the CBN to channel remittance inflows through formal banking systems, boost liquidity in the foreign exchange market, and strengthen oversight of cross-border transactions. It aligns with ongoing initiatives to stabilise the financial sector, as evidenced by recent reassurances from the CBN regarding the safety of customer funds and the stability of banking services amid recapitalisation exercises. This directive underscores the central bank's commitment to fostering a more transparent and efficient economic environment in Nigeria.
