To boost diaspora remittance through official means, the Central Bank has announced two new types of accountsThe accounts are specifically for Nigerians living abroad who plan to send money home and also investAccount holders can maintain both foreign and naira accounts, making transactions easier and more flexible
Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends
The Central Bank of Nigeria (CBN) has launched two new financial products aimed at attracting Nigerians living abroad, the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA).
CBN launches new accounts for Nigerians abroad
Photo credit: cbn
Source: Getty Images
The announcement was made in a circular signed by Dr. W. J. Kanya, Ag. Director, Trade and Exchange Department released on Friday, January 10.
Features of the two accounts
In the circular CBN outlines the key features and benefits of accounts which it believes will improve the ability of Non-Resident Nigerians (NRNs) to participate in the Nigerian economy.
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According to the CBN, the new accounts are intended to improve NRNs’ access to financial services and enable them to contribute more significantly to Nigeria’s socio-economic development.
The central bank stressed that these accounts would allow NRNs to directly manage their funds, eliminating the need for third parties in local commitments and obligations.
The statement from CBN reads:
“The Central Bank of Nigeria is pleased to inform the general public of the introduction of the Non-Resident Nigerian Ordinary Account (NRNOA) and. Non-Resident Nigerian Investment Account (NRNIA) targeted at Nigerians in diaspora.
“The NRNOA enables Non-Resident Nigerians (NRNs) to remit their foreign earnings to Nigeria and manage funds in both foreign and local currencies, while the (NRNIA) enables Non-Resident Nigerians (NRNs) to invest in assets in Nigeria in either foreign currency (FCY) or local currency (Naira). Account holders may maintain both a foreign currency (FCY) account and/or a local currency (Naira) account to facilitate transactions and participate in diverse investment opportunities.
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“The benefits derivable include but are not limited to the following: Improved access for NRNs to epportunities in the Nigerian economy and increased contribution of diaspora community to the socio-economic development of Nigeria. NRNs can use their NRNIA to participate in Nigeria’s Diaspora Bond and other debt instruments issued locally specifically targeted at the Nigerian diaspora or available to the investing public.
“The account will also serve as a conduit for NRNs to manage their funds directly in a safe and secure environment, and reduce the reliance on third parties in meeting local commitments and obligations.
“Effective 1st January 2025, eligible NRNs shall have the opportunity to own any of the Non- resident Nigerian accounts, subject to meeting KYC requirements which will be made available in FAQs to be released soon.
“This policy is without prejudice to Memorandum 17 of the CBN Foreign Exchange Manual (2018) .”
FG begins key deductions from customers’ accounts
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Ealier, Henzodaily.ng reported that the Nigerian government has begun deducting the N50 electronic transfer levy (EMTL) from transactions of N10,000 and above made by fintech firm users.
The fintech firms include Opay, Moniepoint, Palmpay, Kuda Bank, and other digital payment platforms.
The EMTL is under the 2020 Finance Act.
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Source: Henzodaily.ng