The Central Bank of Nigeria (CBN) has issued a letter to all Deposit Money Banks (DMBs), International Money Transfer Operators (IMTOs), and the general public, announcing the inclusion of the Naira as a payout option for diaspora remittances.
In a circular referenced TED/FEM/PC/GEN/01/011, dated November 30, 2020, the CBN introduced the payout option in response to the growing need for flexibility in remittance receipt.
The recent announcement expands the range of payout options available to recipients of diaspora remittances through CBN-approved IMTOs.
Recipients will now have the option to receive their remittance proceeds in Naira, in addition to the existing options of USD and eNaira.
According to CBN, the inclusion of Naira as a payout option aims to provide recipients with increased convenience and accessibility to their funds.
To ensure transparency and consistency, the CBN also mandated that IMTOs use the Investors’ & Exporters’ Window rate as the anchor rate on the day of the transaction when paying out the remittance proceeds.
This measure is intended to align with prevailing market rates and promote fair value for recipients.
The new regulation takes immediate effect, and all stakeholders as the CBN urged to take note and ensure compliance with the updated guidelines.
See excerpts of the letter
- “Further to the circular referenced TED/FEM/PC/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 Investors’ & Exporters’ Window rate as the anchor rate on the day of the transaction.
- This regulation takes effect immediately.”