The Central Bank of Nigeria has issued a sweeping directive aimed at overhauling the national remittance framework as the CBN orders IMTOs to open Naira accounts for all inbound transitions. This new policy, conveyed through a circular signed by the Director of the Trade and Exchange Department, is designed to deepen the foreign exchange market and provide a more transparent mechanism for the settlement of diaspora funds.
Under the new guidelines, all International Money Transfer Operators (IMTOs) are now mandatory participants in the Nigerian Autonomous Foreign Exchange Market (NAFEM), requiring them to maintain dedicated Naira settlement accounts with local deposit money banks to facilitate the swift crediting of beneficiaries.
This strategic move represents a significant pivot from previous restrictions and is intended to incentivize the use of formal channels for personal remittances. By allowing IMTOs to settle transactions in the local currency, the apex bank hopes to eliminate the delays and complexities that have often driven remitters toward the parallel market.
The directive clarifies that while the primary inflow must remain in foreign currency, the final payout to recipients can now be seamlessly converted and settled in Naira at the prevailing market rate. This shift is expected to enhance the supply of US dollars within the official window, thereby stabilizing the exchange rate and reducing the volatility that has plagued the economy in recent months.
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Financial analysts suggest that the requirement for IMTOs to open these accounts will provide the Central Bank with better oversight and data on the volume of informal inflows entering the country. The OAGF and the CBN have collaborated to ensure that the digital infrastructure supporting these settlement accounts is robust enough to handle high-frequency transactions without technical hitches.
Furthermore, the policy mandates that banks must treat these IMTO settlement accounts with high priority, ensuring that funds are available for immediate withdrawal or transfer by the end-users. This level of efficiency is seen as a crucial step in winning back the trust of Nigerians in the diaspora who have sought more reliable ways to support their families back home.
The apex bank also reiterated its commitment to maintaining a level playing field for all operators within the financial ecosystem. The circular warns that any IMTO or deposit money bank found to be in violation of these new settlement protocols will face stiff sanctions, including the potential revocation of operating licenses.
By integrating IMTOs directly into the NAFEM framework, the government is effectively bridging the gap between international digital finance and the local banking sector. This integration is poised to attract more foreign portfolio investments as the transparency of the Naira’s valuation becomes more evident to the international community.
As the implementation phase begins, the CBN has directed all affected operators to conclude the account opening process and integrate their systems within a strictly defined timeline. The move is already being hailed by stakeholders in the fintech industry as a “game-changer” that will significantly lower the cost of sending money to Nigeria.
With the CBN orders IMTOs to open Naira accounts now in full effect, the focus shifts to how these operators will compete on service delivery and exchange rate transparency to capture a larger share of the multi-billion dollar remittance market.