The Central Bank of Nigeria has introduced new measures to strengthen oversight of diaspora remittances, directing all international money transfer operators (IMTOs) to channel transactions through designated naira settlement accounts held with authorised dealer banks.
The directive, contained in a circular titled “Measures to Further Enhance Compliance in the Remittance Space,” was signed by Musa Nakorji, Director of the Trade and Exchange Department, and addressed to IMTOs, banks, and the general public. The policy takes effect from May 1, 2026, giving operators a short transition window to comply.
Under the new rules, all remittance transactions, including beneficiary payments and related settlements, must be processed strictly through accounts maintained with authorised dealer banks in Nigeria.
This marks a significant shift in the regulation of remittance inflows, effectively closing loopholes that previously allowed funds to pass through less traceable channels. The move is aimed at improving transparency and ensuring that foreign exchange inflows are captured within the formal banking system.
IMTOs are required to either designate existing accounts or open new naira settlement accounts. They are also permitted to maintain multiple accounts across different banks, depending on their operational strategies.
All remittance proceeds and foreign exchange conversions must be credited exclusively into these accounts, reinforcing traceability and regulatory monitoring.
To improve pricing discipline, the apex bank has directed IMTOs to adopt real-time exchange rates from Bloomberg BMatch when pricing transactions.
The measure is expected to enhance price discovery, reduce information gaps between market players, and encourage greater participation in the official foreign exchange market.
Authorised dealer banks have also been permitted to transfer foreign currency from IMTO settlement accounts to other banks and approved market participants, including licensed bureau de change operators.
By ensuring remittance inflows are fully captured within the banking system, the CBN aims to boost liquidity, reduce leakages into the parallel market, and improve overall market efficiency.
The circular reinforces existing compliance obligations, mandating IMTOs to maintain detailed transaction records and adhere strictly to anti-money laundering, counter-terrorism financing, and counter-proliferation financing standards.
The move underscores the CBN’s continued reliance on regulatory measures to stabilise Nigeria’s foreign exchange market, as authorities seek to balance liquidity needs with efforts to rebuild investor confidence and ensure orderly market operations.
