The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs), to route diaspora remittances strictly through designated naira settlement accounts held with authorised dealer banks, as part of renewed efforts to strengthen transparency and liquidity in Nigeria’s foreign exchange market.
The new directive, which takes effect from May 1, 2026, is aimed at tightening oversight of remittance inflows, improving traceability of foreign exchange transactions and ensuring that diaspora funds are fully captured within the formal banking system.
The policy is expected to reduce leakages into the parallel market and support price stability in the official foreign exchange window.
The apex bank announced the measure in a circular titled ‘Measures to Further Enhance Compliance in the Remittance Space’, signed by Musa Nakorji, Director of the Trade and Exchange Department, and addressed to all IMTOs, authorised dealer banks, and the general public.
Under the directive, all remittance-related transactions, including beneficiary payments and settlement activities, must be processed exclusively through naira settlement accounts maintained with authorised dealer banks in Nigeria.
The CBN said the move represents a significant shift in remittance regulation, closing loopholes that previously allowed funds to pass through less traceable channels.
IMTOs have been given the flexibility to either designate existing accounts or open new naira settlement accounts to comply with the rule. Operators are also permitted to maintain multiple settlement accounts across different authorised dealer banks, depending on their operational and business needs.
However, all remittance inflows and proceeds from foreign exchange conversions must be credited solely into these designated accounts.
To further enhance transparency and supervision, the CBN directed IMTOs to properly identify their settlement accounts and submit a list of such accounts to the Trade and Exchange Department, with regular updates to support effective regulatory monitoring.
The accounts, the bank stressed, must be used strictly for remittance inflows and related foreign exchange conversion proceeds.
In a related move to improve pricing discipline and market efficiency, the apex bank instructed IMTOs to align their transaction pricing with real-time market rates sourced from Bloomberg BMatch.
According to the CBN, this requirement is expected to improve price discovery, reduce information asymmetry between banks and transfer operators, and encourage greater participation in the official foreign exchange market.
Authorised dealer banks have also been permitted to process foreign currency transfers from IMTO settlement accounts to other banks and approved market participants, including licensed Bureau De Change operators. The measure is intended to enhance liquidity distribution and improve the smooth functioning of the foreign exchange system.
The CBN said the directive reinforces existing compliance obligations, requiring IMTOs to maintain detailed transaction records for regulatory review and to adhere strictly to anti-money laundering, counter-terrorism financing and counter-proliferation financing standards.
Operators have been given a transition window to align their systems and processes ahead of the May 1 implementation date.
The latest policy builds on revised guidelines issued by the apex bank on January 31, 2024, which updated the licensing and operational framework for international money transfer services in Nigeria.
The bank said the reforms are part of broader efforts to strengthen diaspora remittances, boost foreign exchange supply and restore confidence in the Nigerian foreign exchange market.
According to the CBN, capturing remittance inflows within the banking system remains critical to improving market efficiency, curbing speculative pressures and supporting overall economic stability, especially at a time when diaspora remittances remain one of the country’s most reliable sources of foreign exchange.
