“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,” stated the Central Bank of Nigeria (CBN) in a recent directive. This announcement marks a significant shift in how international money transfer operators (IMTOs) will handle remittances in the country, with the new regulation set to take effect on May 1, 2026.
The CBN’s directive aims to enhance transparency and deepen liquidity in the official foreign exchange market. By requiring IMTOs to open naira settlement accounts, the central bank seeks to ensure that all remittance transactions are processed through these accounts, thereby improving traceability and monitoring of funds. “This directive takes effect from May 1, 2026. Please note and ensure compliance,” the CBN emphasized.
Prior to this announcement, IMTO inflows into Nigeria had experienced a notable decline, with a reported 11.78% drop in the first half of 2025 compared to the same period in 2024. Total IMTO receipts during this timeframe amounted to $2.07 billion, down from $2.34 billion in the corresponding period of the previous year. This decline, amounting to $275.93 million, highlighted the need for regulatory changes to stabilize the remittance market.
Under the new regulations, IMTOs will be permitted to operate multiple naira settlement accounts across different authorised dealer banks. This flexibility is expected to facilitate smoother transactions and enhance the overall efficiency of the remittance process. Furthermore, IMTOs are required to maintain detailed transaction records for regulatory review, ensuring compliance with anti-money laundering and counter-terrorism financing standards.
The CBN has also instructed IMTOs to reference real-time rates from Bloomberg BMatch for pricing transactions, a move designed to align the pricing of remittances with current market conditions. “The measure is aimed at enhancing diaspora remittances, strengthening transparency, traceability, and effective monitoring of all transactions,” the CBN noted.
This directive is part of the CBN’s ongoing efforts to stabilize the foreign exchange market and curb leakages into the parallel market. The central bank’s proactive approach reflects its commitment to improving the financial landscape in Nigeria, particularly in the context of international money transfers.
As the implementation date approaches, stakeholders in the remittance sector are expected to adapt to these new requirements. The CBN’s move is seen as a critical step towards fostering a more transparent and efficient financial environment for both IMTOs and their customers.