The Digest:
The Central Bank of Nigeria has directed all International Money Transfer Operators to open and maintain naira settlement accounts with authorized dealer banks, effective May 1, 2026. The directive aims to enhance transparency, traceability, and monitoring of diaspora remittances while improving liquidity in the official foreign exchange market. Under the new rules, all inflows, beneficiary payments, and settlements linked to international money transfers must be routed through designated accounts. IMTOs are also required to adopt market-reflective pricing using the Bloomberg BMatch system.Key Points:
- The directive aims to channel remittance inflows through formal banking channels, boosting official FX market liquidity.
- IMTO inflows fell by 11.78% in the first half of 2025 to $2.07bn, highlighting pressure on a key non-oil FX source.
- The new rules require all transactions to be routed through designated naira settlement accounts, improving regulatory oversight.
- IMTOs must adopt market-reflective pricing via Bloomberg BMatch to improve price discovery and reduce information asymmetry.
- The measure takes effect May 1, 2026, with full compliance required on anti-money laundering and counter-terrorism financing rules.
