The Central Bank of Nigeria (CBN) has announced that individuals in Nigeria can now opt to receive their diaspora remittances in the national currency, the naira.
This development was revealed in a circular dated July 10, 2023, signed by O.S. Nnaji, the Director of CBN’s Trade and Exchange Department.
Furthermore, the central bank has instructed that the exchange rate for the naira payout should be based on the foreign exchange rate from the investors and exporters (I&E) window.
With this change, beneficiaries of diaspora remittances now have the option to receive their funds in naira, in addition to the existing choices of receiving money in dollars or eNaira.
The circular addressed the general public, deposit money banks, international money transfer operators (IMTOs), and other concerned parties.
According to the statement, “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 circular emphasized that this regulation is effective immediately, and compliance is mandatory.
Additionally, the CBN updated the list of registered International Monetary Transfer Operators (IMTOs) in the country, approving five more IMTOs to facilitate diaspora remittances.
The newly authorized IMTOs include CSL Pay Limited, e-2-e Pay Limited, LeadRemit Limited, Lycamoney Financial Services Limited, and SimbaPay Limited.