The Central Bank of Nigeria (CBN) has launched two new financial products, the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA), aimed at attracting Nigerian citizens living abroad.
In a statement released on Friday, the CBN emphasized that these accounts will enhance access for Non-Resident Nigerians (NRNs) to opportunities within the Nigerian economy and boost their contribution to the socio-economic development of the country.
According to the CBN, these accounts will provide NRNs with a secure environment to manage their funds directly, reducing their reliance on third parties for local commitments and obligations.
Effective January 1, 2025, eligible NRNs can open these accounts, subject to meeting Know Your Customer (KYC) requirements detailed in an upcoming Frequently Asked Questions (FAQs) release.
Key features and benefits
The NRNOA allows non-resident Nigerians to remit their foreign earnings to Nigeria and manage funds in both foreign and local currencies. The NRNIA, on the other hand, enables them to invest in assets within Nigeria, either in foreign or local currency.
- Account holders can maintain both foreign and naira accounts to facilitate transactions and participate in investment opportunities. Interest earned on deposits will be subject to applicable federal taxes, and balances in the foreign account can be fully repatriated without restriction. Funds can also be freely converted into naira at prevailing exchange rates through authorized dealers.
- For the NRNIA, investment principal and profits can be fully repatriated, ensuring ease of capital mobility. This allows account holders to seamlessly invest in local or foreign currency-denominated assets, promoting greater investment diversification.
- Valid or expired Nigerian passports may be accepted when accompanied by a valid foreign passport or proof of residency. Alternatively, a valid foreign passport with evidence of Nigerian citizenship of either parent may also be provided.
Optimizing remittances
In October 2024, the CBN led a team comprising the Nigeria Inter-Bank Settlement System (NIBSS), major Nigerian banking institutions, and International Money Transfer Operators (IMTOs) to engage with the Nigerian Diaspora community in Houston, Texas, United States.
During the forum themed “Optimizing Remittances to Nigeria: A Vision for the Future,” the Deputy Governor (Economic Policy), CBN, Muhammad Sani Abdullahi, emphasized the goal of enhancing remittance flows and strengthening Nigeria’s financial sector.
- Remittances have been a significant source of financial inflows for Nigeria, averaging $20.5 billion annually over the past decade, according to the World Bank.
- However, a large portion of these funds is directed toward immediate consumption rather than long-term investments that could drive economic growth.
The CBN, along with key financial stakeholders, aims to shift this approach by exploring how remittances can be better leveraged for national development.
