The naira has been added as a payout option for remittances from the diaspora, according to the Central Bank of Nigeria (CBN).
Additionally, the CBN mandated that the rate for such a naira payout be calculated using the foreign exchange rate from the investors and exporters (I&E) window.
The plan envisions giving Nigerians who receive remittances from abroad the choice to receive their funds in naira going forward.
Additionally, it signifies that the new development is a supplement to the dollar and eNaira as existing payment options.
O.S. Nnaji, Director of the Trade and Exchange Department at the Apex Bank, signed a circular with the instruction on July 10, 2023.
The general public, international money transfer operators (IMTOs), and deposit money banks were all the recipients of the circular.
The text of the announcement is as follows: “Further to the circular referenced TED/FEM/FPC/GEN/01/011 dated November 30, 2020, in relation of the foregoing subject, the Central Bank of Nigeria officially announces Naira as a payout option for receivers of proceeds of International Money Transfers.
Therefore, in addition to receiving USD and eNaira as payout choices, all beneficiaries of diaspora remittances through the CBN-approved IMTOs on the accompanying list shall going forward have the choice of receiving naira payment.
For the avoidance of doubt, International Money Transfer Operators must pay out the funds on the day of the transaction using the Investor & Exporter’s window rate as the anchor rate.
“This rule is effective right away. Please take notice and follow the rules.
The CBN updated its list of the nation’s registered IMTOs in the circular.
In April 2021, there were 57 IMTOs on the list; there are now 62.
For the goal of sending money to people who live in Nigeria or other countries, IMTOs receive cash.
Additionally, they carry out cross-border transfer services for private needs, such as family maintenance transfers and transfers for foreign visitors to Nigeria.
The CBN has authorised CSL Pay Limited, e-2-e Pay Limited, LeadRemit Limited, Lycamoney Financial Services Limited, and SimbaPay Limited as the additional five IMTOs.
