Why Is the CBN Ordering IMTOs to Open Naira Settlement Accounts with Nigerian Banks?

The Central Bank of Nigeria (CBN) has issued a landmark directive requiring all International Money Transfer Operators (IMTOs) to open and maintain naira settlement accounts with authorised dealer banks,a move designed to tighten oversight of diaspora remittances and boost transparency in Nigeria’s foreign exchange market.

The directive, contained in a circular dated March 24, 2026, was signed by Dr Musa Nakorji, Director of the Trade and Exchange Department, and published on the CBN’s official website on Tuesday. It is addressed to IMTOs, authorised dealer banks, and the general public.

What the CBN Directive Says

The apex bank described the measure as part of efforts to “enhance diaspora remittances, strengthen transparency, traceability, and effective monitoring of all transactions.”

Key provisions of the circular include:

Mandatory naira settlement accounts All IMTOs operating in Nigeria must open dedicated naira settlement accounts with Authorised Dealer Banks (ADBs).

Every transaction, including inflows, disbursements to beneficiaries, and related settlements, must be routed exclusively through these designated accounts. Operators are permitted to hold multiple settlement accounts across different banks based on their operational needs.

Restricted account funding These settlement accounts can only be credited with remittance flows and proceeds of foreign exchange conversions by licensed IMTOs or their agents operating within the Nigerian Foreign Exchange Market ,closing potential loopholes in how funds enter the system.

Mandatory account designation and reporting IMTOs must properly designate their settlement accounts and submit the details to the CBN, with periodic updates as required.

Inter-bank transfer flexibility Authorised dealer banks are now empowered to process foreign currency transfers from IMTO settlement accounts to other banks and approved participants, including licensed Bureau De Change (BDC) operators — a measure aimed at improving market efficiency.

Bloomberg BMatch pricing benchmark In a significant step toward market standardisation, the CBN directed IMTOs to benchmark their exchange rates using the Bloomberg BMatch system.

The circular states that IMTOs shall observe real-time market prices from the Bloomberg BMatch and utilise this as guidance for pricing transactions. The CBN noted this would improve price discovery, reduce information asymmetry between IMTOs and banks, and encourage greater participation in the official FX market.

Compliance Requirements and Deadline

The CBN made clear that all operators must:

• Maintain proper transaction records available for regulatory review
• Comply fully with anti-money laundering (AML), counter-terrorism financing (CTF), and counter-proliferation financing regulations

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

they could ultimately lead to more competitive rates and faster settlements as compliance beds in.   

Frequently Asked Questions (FAQs)

What is the CBN’s new directive about? 

The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) operating in Nigeria to open and maintain naira settlement accounts with authorised dealer banks. The goal is to improve transparency, traceability, and oversight of diaspora remittances flowing into Nigeria.

Who does this directive apply to? 

The directive applies to all licensed IMTOs operating in Nigeria, authorised dealer banks, and their agents participating in the Nigerian Foreign Exchange Market.

When does the CBN directive take effect? 

The directive takes effect from May 1, 2026. All IMTOs are expected to be fully compliant by this date.

Can an IMTO open more than one naira settlement account? 

Yes. IMTOs are permitted to maintain multiple naira settlement accounts across different authorised dealer banks, depending on their operational requirements and business strategies.

What transactions must go through these naira settlement accounts? 

All inflows, disbursements to beneficiaries, and settlements related to international money transfers must be routed exclusively through the designated naira settlement accounts. No IMTO transactions are permitted outside these accounts.

What is the Bloomberg BMatch system and why is it being used? 

Bloomberg BMatch is a real-time foreign exchange pricing platform. The CBN has directed IMTOs to use it as a benchmark when pricing transactions with customers and authorised dealers. This is intended to improve price discovery, reduce information gaps between IMTOs and banks, and encourage more activity in Nigeria’s official FX market.

How can naira settlement accounts be funded? 

These accounts can only be funded through remittance flows and proceeds of foreign exchange conversions by licensed IMTOs or their agents. They cannot be credited from unauthorised or informal sources.

Does this directive affect Nigerians in the diaspora sending money home? 

Not directly. The changes are structural and target operators rather than individual senders. However, in the long run, the directive could result in more competitive exchange rates and faster, more reliable settlements for recipients in Nigeria.

What are the compliance obligations for IMTOs under this directive? 

IMTOs must maintain detailed transaction records for regulatory review, submit their designated account details to the CBN, provide periodic updates as needed, and comply with all anti-money laundering (AML), counter-terrorism financing (CTF), and counter-proliferation financing regulations.

What happens if an IMTO fails to comply? 

While the circular does not spell out specific penalties, non-compliance with CBN directives typically exposes operators to regulatory sanctions, suspension, or revocation of operating licences under Nigerian banking and financial regulations.