The Chairman/CEO of the Nigerians in Diaspora Commission (NiDCOM), Hon. Abike Dabiri-Erewa, has called for “strategic engagement” regarding the newly introduced Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA), recently launched by the Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso.
Abdur-Rahman Balogun, Head of Media, Public Relations, and Protocols Unit at NiDCOM, Abuja, disclosed Dabiri-Erewa’s position in a statement on Thursday.
She commended the CBN under Cardoso for the initiative, describing it as a strategic step toward enhancing diaspora engagement and bolstering Nigeria’s economic growth.
Strategic Engagement
- According to the statement, Dabiri-Erewa underscored the crucial role of diaspora remittances, noting they represent the highest source of foreign exchange for Nigeria, reportedly surpassing oil revenues.
- However, she highlighted the importance of “strategic engagement” with the diaspora community by relevant stakeholders to ensure the success of the initiative.
“Nigerians, home and abroad, must join hands to develop Nigeria, as no foreigner will do this for us,” she said, urging Nigerians in the diaspora to leverage the new financial innovation.
She described the development as a proactive approach by the CBN aimed at strengthening ties with the diaspora and optimizing remittances to boost the country’s economy.
What You Should Know
In October 2024, the CBN led a team comprising the Nigeria Inter-Bank Settlement System (NIBSS), major Nigerian banks, and International Money Transfer Operators (IMTOs) to engage the Nigerian diaspora in Houston, Texas, United States.
- At the forum themed “Optimizing Remittances to Nigeria: A Vision for the Future,” CBN Deputy Governor (Economic Policy), Muhammad Sani Abdullahi, outlined efforts to enhance remittance flows and strengthen Nigeria’s financial sector.
- Remittances have been a vital source of financial inflows for Nigeria, averaging $20.5bn annually over the past decade, according to the World Bank.
- However, a significant portion of these funds is spent on immediate consumption rather than long-term investments that could drive economic growth.
Last Friday, the CBN launched two financial products, the NRNOA and NRNIA, aimed at attracting investments from Nigerians living abroad.
- In a statement released the same day, the CBN emphasized that these accounts would improve access for Non-Resident Nigerians (NRNs) to economic opportunities within Nigeria and enhance their contribution to the country’s socio-economic development.
- The NRNOA allows NRNs to remit foreign earnings to Nigeria and manage funds in both foreign and local currencies. The NRNIA enables them to invest in assets within Nigeria in foreign or local currency.
The accounts have a number of key features:
- Dual Currency Management: Account holders can maintain both foreign and naira accounts for transactions and investments.
- Taxation: Interest earned on deposits will be subject to applicable federal taxes.
- Repatriation and Conversion: Foreign account balances can be fully repatriated without restriction, and funds can be converted into naira at prevailing exchange rates through authorized dealers.
The CBN, in collaboration with key financial stakeholders, aims to shift the narrative around remittances by exploring ways they can be better leveraged for national development.
