The Central Bank of Nigeria (CBN) has instituted new Diaspora remittances rule mandating International Monetary Transfer Operators (IMTOs) to pay beneficiaries of offshore transfers in dollars. Despite resistance by IMTOs profiting from the old payment order, the apex bank has tightened the regulatory noose to ensure that beneficiaries get value for their money and have unfettered access to their funds in the currency of their choice. The CBN’s renewed dollar payment to beneficiaries policy is expected to boost the over $24 billion yearly diaspora remittances to Nigeria, strengthen the naira and economy, writes COLLINS NWEZE
For years, diaspora remittances beneficiaries have little or no say on what currency their funds should be paid. They dare not ask the International Money Transfer Operators (IMTOs) commercial banks at the centre of the transaction to credit their domiciliary accounts with the dollar inflows.
But today, the game has changed. The funds beneficiaries can decide how he/ she receives the funds and the currency of choice.
This followed a new Central Bank of Nigeria (CBN) policy given diaspora remittances beneficiaries the option of deciding how they want their funds paid.
The policy which has taken off, ensures that diaspora remittances beneficiaries can receive their forex in dollars, have unfettered access and utilization to foreign currency proceeds, either in forex cash and/or in their domiciliary accounts, in line with CBN policy.
There are over 1.24 million Nigerian Migrants abroad and 50 per cent of them lives within the African neighbour hood, and the figure is expected to rise in the coming years.
The migrants’ cumulative remittances figures into the Nigerian economy by the World Bank estimates indicated $22 billion in 2017, $23 billion in 2018 and $24 billion in 2019.
CBN Governor Godwin Emefiele said the new policy measures in the country’s remittance programme are designed to boost and facilitate an efficient flow of remittances sent home by Nigerians in the Diaspora.
These changes are as a result of the apex bank’s internal review of the operations of IMTOs in the country and the potential impact improved flows could have on the economy.
Emefiele explained that given the estimated annual remittance inflow of close to $24 billion, which could help in improving Nigeria’s balance of payment position, reduce dependence on external borrowing and mitigate the impact of COVID-19 on foreign exchange inflows into the country, the CBN sought to find ways to support improved remittance inflows into the country through official […]
