By Abiodun Folarin
WorldStage– As part of its measures to strengthen international remittances, enhance transparency, and ensure effective monitoring of transactions, the Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) to open naira settlement accounts and ensure that all transactions are routed strictly through their designated settlement accounts maintained with Authorised Dealer Banks (ADBs) in Nigeria.
The apex bank, in a circular signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, stated that the new framework for IMTOs and ADBs will take effect from May 1, 2026.
The CBN recalled that on January 31, 2024, it issued revised guidelines for international money transfer services in Nigeria, providing a framework for the licensing and operations of IMTOs in the country.
“As part of measures to enhance diaspora remittances and strengthen transparency, traceability, and effective monitoring of all transactions, this circular is hereby issued,” the bank stated.
Accordingly, all IMTOs, ADBs, and the general public are required to note that IMTOs must 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 related settlements must be processed exclusively through the IMTOs’ settlement accounts held with any ADB of their choice.
The bank also advised that IMTOs may designate existing accounts or open new settlement accounts and may operate multiple accounts with different ADBs in line with their business strategies.
It added that settlement accounts shall only be credited with remittance inflows and proceeds of foreign exchange conversions by licensed IMTOs (or their agents) with authorised participants in the Nigerian Foreign Exchange Market (NFEM).
IMTOs are required to ensure that their settlement accounts are properly designated and operated in accordance with existing regulatory guidelines. Each licensed IMTO must submit a list of its designated settlement accounts to the Director of the Trade and Exchange Department and update it regularly as necessary.
To support market efficiency and improve pricing outcomes, ADBs may process foreign currency transfers from IMTO settlement accounts to other ADBs and approved market participants, including licensed Bureau De Change (BDCs).
The apex bank also noted that IMTOs must observe real-time market prices from the Bloomberg BMatch system and use this as a guide for pricing transactions with customers and Authorised Dealers. This, it said, will improve price discovery, reduce information asymmetry between IMTOs and banks, and encourage greater participation in the official foreign exchange market.
“All IMTOs are required to ensure full compliance with this directive and maintain adequate records of related transactions for regulatory review and audit purposes. IMTOs are also reminded to maintain acceptable standards and comply with AML/CFT/CPF requirements,” the CBN stated.
