CBN directs IMTOs to open naira settlement accounts

The Central Bank of Nigeria has directed all Worldwide Cash Switch Operators working within the nation to open and keep naira settlement accounts with authorised vendor banks, as a part of efforts to tighten oversight of diaspora remittances and enhance transparency within the overseas change market.

The directive was contained in a round dated March 24, 2026, signed by the Director of the Commerce and Alternate Division, Dr Musa Nakorji, and addressed to IMTOs, authorised vendor banks and most of the people.

The round was revealed on the apex financial institution’s web site on Tuesday.

The CBN mentioned the measure is geared toward “enhancing diaspora remittances, strengthening transparency, traceability, and efficient monitoring of all transactions.”

It said that “all IMTOs are hereby directed to open naira settlement accounts and be sure that all transactions are routed strictly by their designated settlement accounts, maintained with Authorised Supplier Banks in Nigeria.”

Below the brand new rule, all inflows, beneficiary funds and associated settlements linked to worldwide cash transfers are to be processed solely by these accounts.

IMTOs might, nevertheless, function a number of settlement accounts throughout totally different banks according to their operational wants.

The round additionally launched tighter controls on how the accounts could be funded, stating that they “shall solely be credited with remittance flows and proceeds of overseas change conversions by licensed IMTOs (or their brokers)” inside the Nigerian overseas change market.

Operators are required to obviously designate the accounts and submit the small print to the CBN, with updates supplied periodically the place crucial.

To enhance market operations, authorised vendor banks are permitted to course of overseas foreign money transfers from IMTO settlement accounts to different banks and permitted members, together with licensed Bureau De Change operators.

The apex financial institution additional directed IMTOs to undertake market-reflective pricing by referencing the Bloomberg BMatch system. It mentioned IMTOs “shall observe real-time market costs from the Bloomberg BMATCH and utilise this as steerage for pricing transactions with their clients and Authorised Sellers.”

In line with the CBN, this method is anticipated to “enhance value discovery, scale back info asymmetry between IMTOs and banks, and encourage elevated participation within the official FX market.”

The financial institution added that each one operators should keep correct transaction information for regulatory checks and comply absolutely with anti-money laundering, counter-terrorism financing and counter-proliferation financing guidelines.

“This directive takes impact from Might 1, 2026. Please observe and guarantee compliance,” the round said.

The transfer reveals the CBN’s push to channel remittance inflows by formal banking channels, increase liquidity within the official overseas change market and strengthen regulatory oversight of cross-border transactions.

PidomNigeria On-line reviews that IMTO inflows into Nigeria fell by 11.78 per cent within the first half of 2025 in contrast with the identical interval of final 12 months, in accordance with figures from the CBN’s Quarterly Statistical Bulletin.

An evaluation of the information confirmed that IMTO receipts totalled $2.07bn between January and June 2025, down from $2.34bn recorded within the corresponding interval of 2024.

This represents a decline of about $275.93m year-on-year, exhibiting stress in an vital non-oil overseas change supply at a time the financial authorities are banking on remittances to assist market liquidity.