Market News
CBN Directs IMTOs To Open Naira Settlement Accounts With Banks - NEW TELEGRAPH
BY Tony Chukwunyem
In a move to enhance diaspora remittances, strengthen transparency, traceability, and effective monitoring of all transactions, the Central Bank of Nigeria (CBN), on Wednesday, ordered all International Money Transfer Operators (IMTOs) operating in the country to open and maintain naira settlement accounts with Authorised Dealer Banks (ADBs).
The apex bank gave the directive in a circular dated March 24, 2026, signed by the Director of the Trade and Exchange Department, Dr Musa Nakorji, and addressed to IMTOs, Authorised Dealer Banks, and the general public.
It stated: “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.”
According to the circular, this means that all transactions arising from international money transfer operations, including disbursements to beneficiaries, and related settlements, must now be processed exclusively through IMTOs’ settlement account(s) held with any ADB of their choice.
The circular also said that IMTOs may use their “discretion to designate new their existing accounts or open new settlement accounts and may operate accounts with multiple ADBs in line with their business strategy.”
Furthermore, the circular stated that the settlement accounts, “shall only be credited with remittance flows and proceeds of foreign exchange conversions by licensed IMTOs (or their agents) with authorized market participants in the Nigerian Foreign Exchange Market.”
Additionally, IMTOs, according to the circular, are required to properly designate their settlement accounts for this purpose and submit a list of such accounts (which would be updated as necessary) to the CBN.
Under the new arrangement, the CBN also granted Authorised Dealer Banks the ability to process foreign currency transfers from IMTO settlement accounts to other banks and approved participants, including licensed Bureau De Change operators.
It said that this move is aimed at supporting marketing efficiency and enhancing “pricing outcomes for IMTO transactions.” The apex bank also introduced pricing guidelines, directing IMTOs to benchmark their rates using the Bloomberg BMatch system.
