The Central Bank of Nigeria (CBN) has announced that Nigerians now have the choice to receive their diaspora remittances payout in Naira, according to a recent circular. The circular, dated July 10 and signed by Ozoemena Nnaji, Director of Trade & Exchange Department, states that the Naira is now an available option for receiving international money transfers.
In December 2020, the CBN had directed international money transfer operators (IMTOs) and commercial banks to pay beneficiaries of diaspora remittances in foreign currencies, as part of an effort to deepen the foreign exchange market and enhance transparency in remittance administration in Nigeria.
However, the new directive from the CBN now allows recipients to opt for Naira payout.
The circular stated, “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.”
The CBN also instructed that the investors and exporters (I&E) window foreign exchange rate should be used to determine the rate for the Naira payout.
The new directive does not imply that the CBN is eliminating foreign currency payouts but provides the option of receiving payment in Naira, which was previously prohibited.
The CBN urged compliance with the regulation, emphasizing that it takes effect immediately.
List of Licensed IMTOs
The CBN provided a list of about 62 licensed IMTOs in the country as of July 10, including:
Source: Premium Times
