CBN Mandates IMTOs to Open Naira Accounts to Strengthen FX Transparency

The Central Bank of Nigeria has directed all International Money Transfer Operators (IMTOs) to open and maintain naira settlement accounts with authorised dealer banks, in a move to enhance transparency and oversight in diaspora remittance flows.

The directive was issued in a circular signed by the Director of the Trade and Exchange Department, Musa Nakorji, and addressed to IMTOs, banks, and the general public.

According to the apex bank, the measure is part of broader efforts to improve monitoring and efficiency within the foreign exchange market.

“Enhance diaspora remittances, strengthen transparency, traceability, and effective monitoring of all transactions.”

The CBN further directed that:

“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 (ADBs) in Nigeria.”

Under the new framework, all remittance inflows, disbursements, and related transactions must be processed exclusively through these accounts. Operators are, however, permitted to maintain multiple accounts across different banks in line with their operational needs.

Tighter Controls Introduced

The central bank also introduced stricter funding rules for these accounts, stating that they:

“Shall only be credited with remittance flows and proceeds of foreign exchange conversions by licensed IMTOs (or their agents).”

In addition, IMTOs are required to properly designate their accounts and submit relevant details to the CBN, with periodic updates as necessary.

To improve market efficiency, authorised dealer banks have been permitted to process foreign currency transfers from IMTO accounts to other approved participants, including licensed Bureau De Change operators.

The CBN also introduced pricing guidelines, directing IMTOs to align their rates with real-time market data.

“Shall observe real-time market prices from the Bloomberg BMATCH and utilise this as guidance for pricing transactions with their customers and Authorised Dealers.”

According to the bank, this will:

“Improve price discovery, reduce information asymmetry between IMTOs and banks, and encourage increased participation in the official FX market.”

The apex bank emphasised strict adherence to regulatory requirements, including anti-money laundering and counter-terrorism financing rules.

“This directive takes effect from May 1, 2026. Please note and ensure compliance.”

The move signals a continued push by the CBN to channel diaspora inflows through formal banking systems, strengthen liquidity in the official foreign exchange market, and improve regulatory visibility over cross-border transactions.