On Tuesday, the Central Bank of Nigeria (CBN) instructed Deposit Money Banks (DMBs) and International Money Transfer Operators (IMTOs) to pay all diaspora remittances in Naira and align them with the corresponding foreign currency inflows from now on.
The Bank stated that this measure is part of the CBN’s commitment to ensuring the smooth operation of foreign exchange markets and encouraging greater remittance flows through formal channels.
The Central Bank disclosed its directive to all DMBs and IMTOS to pay all diaspora remittances in Naira in a circular dated June 24, 2024, that was signed by the CBN acting Director, Trade & Exchange Department, Dr. W. J. Him, which was addressed to all DMBs and IMTOS.
The circular also mentioned that transaction pricing with the CBN would be based on current Nigerian Autonomous Foreign Exchange Market (NAFEM) rates, using an observable and acceptable market benchmark as a reference.
The CBN stated that the option of same-day settlement would be available for transactions executed and confirmed before noon on a trading date.
It emphasized that all interested International Money Transfer Operators (IMTOs) must confirm their partner banks and provide standard settlement instructions to ensure the smooth implementation of this initiative. It also noted that participants in this segment are limited to IMTOs, Authorized Dealers Banks (ADBs), and the CBN.
The central bank had introduced several initiatives aimed at improving capital inflows into the country through diaspora sources.
In its bid to shore up inflows capital inflows via diaspora resources, it introduced the digital currency known as eNaira as a payment option to recipients of diaspora remittances