CBN Introduces Non-resident Accounts For Nigerians In Diaspora

The Central Bank of Nigeria (CBN) has announced the introduction of the Non-Resident Nigerian Ordinary Account (NRNOA) and Non-Resident Nigerian Investment Account (NRNIA), which it said, are targeted at Nigerians in the diaspora.

In a circular posted on its website yesterday, the apex bank explained that while the (NRNOA) allows Non Resident Nigerians (NRNs) to remit their foreign earnings to the country and manage funds in both foreign and local currencies, NRNIA gives NRNs the opportunity of investing in assets in the country in either Foreign Currency (FCY) or local currency (naira).

It further stated that account holders may maintain both a foreign currency account and/or a local currency account to facilitate transactions and participate in diverse investment opportunities.

According to the CBN, one of the key benefits of the initiative is that it gives NRNs more access to opportunities in the Nigerian economy as well as allowing for increased contribution by Nigeria’s diaspora community to the country’s socio-economic development.

For instance, the regulator stated that: “NRNs can use their NRNIA to participate in Nigeria’s Diaspora bond and other debt instruments issued locally, specifically targeted at the Nigerian diaspora or available to the investing public.”

In addition, the CBN said that the initiative will give NRNs the opportunity of managing their funds directly, “in a safe and secure environment and reduce the reliance on third parties in meeting local commitments and obligations.”

However, the apex bank said that for eligible NRNs to own any of the two accounts they must comply with Know Your Customer (KYC) requirements which it would soon release.

Under the framework for the operation of both accounts which commenced on January 1 2025, the CBN said that the NRNOA will be used for depositing foreign income earned by individuals residing outside Nigeria, including salaries, allowances, dividends and rental income, adding that the funds in this account can be used for meeting needs such as family maintenance, education, healthcare and other day-to-day needs in the country.

While stating that interest earned on deposits in this account will be subject to applicable taxes, the apex bank said that balances in the foreign currency account can be fully repatriated out of the country without restriction.

Furthermore, it said that the foreign currency funds can be freely converted into naira at prevailing exchange rates through authorised dealers.

For the NRNIA, the CBN said that this account facilitates investment in Nigerian financial markets and instruments including FCY domestic bonds, fixed FCY deposits and other FCY –denominated assets.

This account also facilitates local currency investments in equities, government securities, mortgage products and other eligible local investment securities.

According to the CBN: “Balances in the NRNIA, including investment principal and profits, can be fully repatriated out of Nigeria without restriction, and ensure ease of capital mobility.”

CityMirrorNews reports that CBN Governor, Olayemi Cardoso, had announced during the IMF/World Bank Annual Meetings in Washington DC, in October, that the Nigerian Inter-Bank Settlement System (NIBSS) would by December launch a Bank Verification Number (BVN) platform for Nigerians in the diaspora.

He said that the platform would enable Nigerians in the diaspora to operate their local bank accounts, run their businesses and sort out Know-Your-Customer (KYC) issues with financial institutions from anywhere in the world.

He explained that the initiative was part of efforts to ensure that Nigerians, irrespective of their location anywhere in the world, could participate in the Nigerian economy.