CBN mandates IMTOs to use naira settlement accounts for diaspora inflows - Businessday NG

The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) to route diaspora inflows through designated naira settlement accounts held in commercial banks. This directive, outlined in a circular signed by Musa Nakorji, aims to enhance transparency, traceability, and monitoring of these remittances, which are a crucial source of foreign exchange for Nigeria. IMTOs are now required to process all transactions, including beneficiary payments, through these accounts, and can utilize multiple accounts across different banks.

To improve pricing discipline, the CBN also mandated IMTOs to reference real-time rates from Bloomberg BMatch when pricing transactions, aiming to reduce information asymmetry and encourage participation in the official foreign exchange market. Authorized dealer banks are permitted to transfer funds from IMTO settlement accounts to other banks and Bureau de Change operators, improving liquidity distribution.

The CBN intends to capture these inflows within the banking system to curb leakages to the parallel market and improve overall market efficiency. The new regulations, which take effect on May 1, 2026, also reinforce compliance obligations related to anti-money laundering and counter-terrorism financing. This move reflects the CBN’s increasing reliance on administrative measures to stabilize the foreign exchange market and restore investor confidence.

(Source：Business News Nigeria)