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The Central Bank of Nigeria on Monday amended the procedures for diaspora remittances in Nigeria.
The bank said this in a circular issued on Monday to all financial market dealers
The circular with reference number TED/FEM/EPC GEN/01/011, was dated November 30, 2020 and signed by the Director, Trade and Exchange Department of the CBN,
DR. O.S. Nnaji.
It said the review is part of efforts to liberalize, simplify and improve the receipt and administration of diaspora remittances into Nigeria, the Central Bank of Nigeria.
Based on the amendment, the apex bank said henceforth, beneficiaries of Diaspora Remittances through International Money Transfer Operators would receive such inflows in foreign currency (US Dollars) through the designated bank of their choice,
Such recipients of remittances may have the option of receiving these funds in foreign currency cash (US Dollars) or into their ordinary domiciliary account.
These changes, it added, are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora Remittances into Nigeria.
In addition, “these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients of remittances would receive a market reflective exchange rate for their inflows”.
It also said,
“All Authorized Dealers and the general public should note that beneficiates shall have unfettered access and utilization to such foreign currency proceeds, either in cash and/or in their Domiciliary Accounts, in line with our circular TED/FEM/FPC/GEN/01/010. Please ensure strict compliance and be guided accordingly.”
The World Bank has predicted that inflow of Diaspora remittance to Nigeria will drop by $2bn in 2020 to $21.7bn as against the $23.8bn the country recorded in 2019.
The World Bank had in its Report hinged the decline in remittances from Nigerians living abroad on an account of the double whammy of the COVID-19 pandemic and the attendant economic crisis that has continued to spread.
