ABUJA, NIGERIA — The Central Bank of Nigeria, CBN, has issued a directive to International Money Transfer Operators, IMTOs, stating that domestic beneficiaries can now receive Diaspora remittances in naira.
This announcement came on Wednesday, July 12, 2023, reshaping the landscape of international transactions in the country.
O.S Nnaji, the Director of Trade and Exchange Department of the CBN, released a circular to banks, IMTOs, and the public, listing 62 approved IMTOs to carry out the new directive.
Among them are global heavyweights such as Western Union, World Remit Limited, and Flutterwave Technology Solutions Limited, as well as Nigerian-based operators like Interswitch Limited and eTransact International Limited.
The circular, titled “Payout Option in Naira Receipt of Proceeds of Diaspora Remittances,” stated: “Further to the circular referenced TED/FEM/FPC/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.”
The announcement further stipulates that “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 clarification, the circular continues, “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. Please note and ensure compliance.”
This significant move by the CBN comes amid economic shifts and digital advances in the finance sector.
The impact on both the remittance landscape and the Nigerian diaspora’s interactions with home will be under keen observation in the days to come.
