The Central Bank of Nigeria (CBN) has directed all International Money Transfer Operators (IMTOs) in Nigeria to open Naira settlement accounts with local banks. Furthermore, the apex bank instructed that all remittance transactions must pass through these accounts.

This directive forms part of ongoing efforts to strengthen financial transparency. It also aims to improve oversight of remittance inflows into Nigeria.

Strengthening Nigeria’s Remittance System

The Central Bank of Nigeria introduced the directive to improve the structure of Nigeria’s remittance system. The bank wants a more organised and accountable process.

Therefore, every IMTO must maintain a dedicated Naira account in Nigeria. Through these accounts, operators will now process all remittance transactions.

In addition, the directive allows regulators to monitor foreign exchange inflows more effectively. Consequently, authorities can track funds with greater accuracy.

Remittances remain a vital source of foreign exchange for Nigeria. Millions of Nigerians abroad send money home every year. These funds support families, businesses, and community development.

Because of this importance, the Central Bank of Nigeria continues to introduce policies that strengthen the remittance ecosystem.

Improving Transparency and Compliance

The directive will also boost transparency across the financial system. With Naira settlement accounts in place, regulators can track transactions more easily.

As a result, the system will discourage irregular practices. It will also strengthen compliance with Nigeria’s financial regulations.

Moreover, the policy aligns with broader financial reforms. In recent years, the Central Bank of Nigeria has focused on improving accountability within the banking sector.

Through stronger monitoring tools, the apex bank aims to build greater trust in Nigeria’s financial system.

Impact on Money Transfer Operators

International Money Transfer Operators must now work closely with Nigerian banks. First, they must open the required Naira settlement accounts. Next, they must process every remittance transaction through those accounts.

This structure will simplify transaction monitoring. It will also improve coordination between IMTOs and Nigerian financial institutions.

Additionally, the directive will help financial authorities reconcile transactions faster. Consequently, the system will become more efficient.

Supporting Economic Stability

The policy also supports Nigeria’s broader economic reforms. The government continues to strengthen foreign exchange management. At the same time, regulators seek better control over cross-border financial flows.

Through this directive, the Central Bank of Nigeria aims to improve accountability and financial discipline.

Ultimately, the move reflects Nigeria’s determination to modernise its financial sector. More importantly, it signals a strong commitment to transparency, economic stability, and sustainable financial growth.