Nigerians Can Now Receive Naira For Diaspora Remittances, Says CBN

The Central Bank of Nigeria (CBN) has declared the inclusion of the naira, the country’s legal tender, as a payout option for diaspora remittances.

The apex bank also ordered that the investors and exporters (I&E) window foreign exchange rate should be used in determining the rate for such naira payout.

The development means recipients of diaspora remittances will now have the option to receive their proceeds in naira, in addition to the existing options of dollar and eNaira.

The CBN gave the directive in a circular no TED/FEM/PUB/FPC/001/004 to all Deposit Money Banks, International Money Transfer Operators, and the general public titled ‘Payout option in naira for receipt of proceeds of diaspora remittances’ signed by the Director, Trade & Exchange Department, Dr. O.S Nnaji, dated July 10, 2023, and released on Wednesday.

It stated that “Further to the circular referenced TED/FEM/FPC/GEN/01/011 dated November 30, 2020, in respect of the above subject, the Central Bank of Nigeria hereby announces Naira as a payout option for receipts of proceeds of International Money Transfers.

“Accordingly, all recipients of diaspora remittances through the CBN-approved IMTOs on the attached list shall henceforth have the option of receiving naira payment in addition to USD and eNaira as payout options.

“For the avoidance of doubt, International Money Transfer Operators are required to pay out the proceeds using the Investor & Exporter’s window rate as the anchor rate on the day of the transaction.”

The CBN listed about 62 licensed IMTO in the country as of the end of July 10.

It would be recalled that in November 2020, CBN, in a circular, said, to liberalise, simplify and improve the receipt and administration of diaspora remittances into Nigeria, “Beneficiaries of diaspora remittances through IMTOs shall henceforth receive such inflows in foreign currency (US dollars), through the designated bank of their choice.

“Such recipients of remittances may have the option of receiving these funds in foreign currency cash (US dollars) or into their domiciliary account.”