CBN Mandates Money Transfer Firms To Route Diaspora Remittances Through Banks

The Central Bank of Nigeria has moved to tighten regulatory oversight of diaspora remittances, mandating International Money Transfer Operators (IMTOs) to route all transactions through designated naira settlement accounts in Nigerian banks, effective May 1, 2026.

The apex bank, in a circular signed by the director Trade and Exchange Department, Dr Musa Narkoji and addressed to IMTOs, Authorised Dealer Banks (ADBs) and the general public, said the measure is part of efforts to enhance transparency, traceability and effective monitoring of remittance inflows into the country.

Under the new directive, all IMTOs are required to open and maintain naira settlement accounts with ADBs and ensure that all transactions, including disbursements to beneficiaries, are processed strictly through such accounts.

Specifically, the CBN stated that “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.”

It added 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 accounts held with any ADB of their choice.”

The bank noted that operators may maintain multiple accounts, stating that 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 move, according to the apex bank, is aimed at strengthening regulatory control over remittance flows, plugging leakages and ensuring that all inflows are captured within the formal financial system.

Further tightening the framework, the CBN stipulated that “settlement accounts shall only be credited with remittance flows and proceeds of foreign exchange conversions by licensed IMTOs (or their agents) with authorised market participants in the Nigerian Foreign Exchange Market (NFEM).”

It also directed that IMTOs must properly designate and report such accounts, noting that “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.

“In order to support market efficiency and enhance pricing outcomes for IMTO transactions , ADBs may process foreing currency transfers from IMTO settlement accounts to other ADBs and other market participants including BDCs.”

The apex bank reiterated the need for strict compliance, warning that enhanced monitoring mechanisms would be deployed to ensure full adherence to the directive.