WED MAR 25 2026-theGBJournal| The Central Bank of Nigeria (CBN) has directed International Money Transfer Operators (IMTOs), such as the Western Union, WorldRemit, and MoneyGram, and others to open Naira settlement accounts with their Authorised Dealer Banks (ADBs) in Nigeria.
They are also to ensure that all transactions are routed strictly through their designated settlement accounts, maintained with ADBs in Nigeria.
According to the apex bank, the directive is aimed at improving transparency and traceability of remittance transactions, and effective monitoring of all transactions, addressing concerns about leakages and limited visibility in the inflow channels.
By ensuring that IMTOs open Naira settlement accounts, the CBN expects to strengthen oversight and ensure that all inflows are properly recorded within official frameworks.
The directive issued today by the apex is a follow up to the revised guideline issued on January 31, 2024 for international money transfer services in Nigeria, which provided a framework for the licensing and operations of International Money Transfer Operators (IMTOs) in the country.
The latest update to the guideline means that all transactions arising from international money transfer operations, including disbursements to beneficiaries and any related settlements, must be processed exclusively through the IMTO’s settlement account(s) held with any ADB of their choice.
”IMTOs may use their discretion to designate their existing accounts or open new settlement accounts and may operate accounts with multiple ADBs in line with their business strategy,” the CBN said.
In the update, the CBN said 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 (NFEM).
It adds that IMTOs shall ensure that their settlement accounts are properly designated for this purpose and operated in accordance with existing regulatory guidelines.
A list of designated settlement accounts shall be advised by each licensed IMTO to the Director, Trade and Exchange Department, and updated regularly as necessary
According to the CBN: In order to support market efficiency and enhance pricing outcomes for IMTO transactions, ADBs may process foreign currency transfers from IMTO settlement accounts to other ADBs and approved market participants, including licensed BDCs.
Besides, IMTOs shall observe real-time market prices from the Bloomberg BMATCH and utilise this as guidance for pricing transactions with their customers and Authorised
Dealers.
This, according to the CBN will improve price discovery, reduce information asymmetry between IMTOs and banks as well as encourage increased participation in the official FX market.
The CBN said all IMTOs are required to ensure full compliance with this directive and maintain adequate records of related transactions for regulatory review and audit purposes.
With diaspora remittances remaining a vital source of external funding, the inclusion of major money transfer players underscores the CBN’s commitment to formalizing inflows, boosting investor confidence, and supporting macroeconomic stability.
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