The Central Bank of Nigeria has issued a press release revealing that resident Nigerians and Companies who have forex in their domiciliary accounts in Nigerian banks or with any authorized dealers can now invest that amount in Nigerian Equities, Money Market Instruments and Bonds.
The new policy is seen as CBN’s effort to unlock billions of dollars owned by Nigerians that are lying idle in domiciliary accounts of most banks. Thus the same treatment being offered to foreign portfolio investments will now be extended to local investors who also have forex.
Before now, local investors who owned forex will have to convert same to Naira before investing in the equities or money market. That conversion will not be treated as a foreign portfolio inflow by the CBN. With this new policy such deposits will be seen as foreign portfolio inflows if they are invested in the approved markets via a designated broker or local bank. Depositors who invest via the provisions of this policy can always get their money back in forex provided that they are issued a certificate of capital importation.
See the press release below;
