The CBN’s directive, effective May 1, 2026, requires all remittance transactions to be processed exclusively through these newly established naira settlement accounts. This move comes in response to a notable decline in IMTO inflows, which fell by 11.78% in the first half of 2025 compared to the same period in 2024. Total IMTO receipts during this timeframe amounted to $2.07 billion, down from $2.34 billion in the corresponding period of the previous year.

Prior to this directive, the CBN had issued revised guidelines for international money transfer services in Nigeria on January 31, 2024, indicating a growing concern over the management of foreign exchange and remittance flows. The latest measure is part of ongoing efforts to stabilize the foreign exchange market and curb leakages into the parallel market, which has been a persistent issue affecting the Nigerian economy.

In addition to opening naira settlement accounts, IMTOs are required to maintain detailed transaction records for regulatory review and must comply with anti-money laundering and counter-terrorism financing standards. This comprehensive approach is designed to strengthen the monitoring of all transactions and ensure that they adhere to the highest regulatory standards.

The CBN has also instructed IMTOs to reference real-time rates from Bloomberg BMatch for pricing transactions, further enhancing the transparency of the pricing mechanism. “The measure is aimed at enhancing diaspora remittances, strengthening transparency, traceability, and effective monitoring of all transactions,” the CBN emphasized.

IMTOs will have the flexibility to operate multiple settlement accounts across different authorised dealer banks, allowing for greater operational efficiency and responsiveness to market conditions. This flexibility is expected to facilitate smoother transaction processes for both IMTOs and their customers.

As the deadline for compliance approaches, stakeholders in the remittance sector are closely monitoring the developments. The CBN’s directive is seen as a crucial step towards improving the overall integrity of the financial system in Nigeria. “This directive takes effect from May 1, 2026. Please note and ensure compliance,” the CBN reiterated, underscoring the importance of adherence to the new regulations.

Details remain unconfirmed regarding the specific operational changes that IMTOs will need to implement to comply with this directive, but the implications for the remittance landscape in Nigeria are expected to be significant. The CBN’s proactive measures signal a commitment to enhancing the regulatory framework governing international money transfers, ultimately benefiting both senders and recipients of remittances.

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