The Central Bank of Nigeria (CBN) has issued a directive to International Money Transfer Operators (IMTOs) to facilitate Remittances pay-out in both Naira and Foreign Exchange to Beneficiaries.
Additionally, the CBN has Instructed that the Exchange rate for Naira Pay-Outs should be based on the Investors and Exporters (I&E) Window Foreign Exchange rate.
In a circular dated July 10, 2023, referencing FED/FEM/PUB/FPC/001/004, the Director of Trade and Exchange, Dr. Ozoemena Nnaji, Announced that this Decision aligns with a previous Circular Issued on November 30, 2022, which provided Guidelines for the Payout Policy of Diaspora Remittances.
November 30, 2022, Circular Introduced the option for Beneficiaries of Diaspora Remittances to receive Payments in Dollars through their chosen designated Banks, granting Unrestricted access to their Funds.
According to the new Circular, Naira payment is now an additional option alongside United States Dollars and E-Naira for receiving Diaspora Remittances.
The Circular States, “All recipients of Diaspora Remittances through the CBN-approved International Money Transfer Operators (IMTOs) on the attached list shall Henceforth have the option of receiving Naira payment in addition to USD and e-Naira as Payout options.
IMTOs are required to pay out the proceeds using the Investors’ & Exporters’ Window rate as the anchor rate on the date of the Transaction.
The regulation takes effect Immediately.”
It should be noted that the CBN recently Announced the Unification of all segments of the Nigerian Forex Market by Consolidating all Windows into the Investors & Exporters (I&E) Window.
This move Aims to enhance liquidity and stability in the Market by attracting Foreign Investors to the Nigerian Economy.
Furthermore, the CBN Discontinued the RT200 and Naira4dollar Remittance schemes last month.
These Schemes, Introduced in 2021, provided Incentives to encourage Diaspora Remittances and boost Non-Oil Exports.
The CBN’s Directive regarding the Naira payout option for Remittances aims to Provide recipients with Increased Flexibility and Accessibility while utilizing the Investor’s and Exporters’ Window rates for accurate Exchange rate Conversions.
