Add Naira as payment option for diaspora remittances, CBN directs IMTOs

The Central Bank of Nigeria (CBN) has directed International Money Transfer Operators (IMTO) to add naira as a payment option for diaspora remittances.

CBN said the payment option for proceeds of diaspora remittances has been increased to three; the United States Dollar, naira and eNaira.

This was disclosed in a circular titled; Payout Option in Naira for Receipt of Proceeds of Diaspora Remittances’ with reference no: TED/FEM/PUB/FPC/001/004.

In the circular obtained on Wednesday, but dated July 10, 2023, the CBN also directed the International Money Transfer Operators to use the Investors’ & Exporters’ window rate when converting the foreign exchange to naira.

Recall that during the tenure of the suspended CBN Governor, Godwin Emefiele, International Money Transfer Operators, were told to only payout proceeds of diaspora remittances in foreign currency, restricting them from automatically converting the remittance.

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Disclosing the new development in the circular signed by CBN’s Director, Trade & Exchange Department, O.S Nnaji, the apex bank said: “Further to the circular referenced TED/FEM/FPC/01/011 dated November 30, 2020 in respect of the above subject, the Central Bank of Nigeria hereby announces Naira as a payout option for receipts of the proceeds of International Money Transfers.

“Accordingly, all recipients of diaspora remittances through the CBN approved IMTOs on the attached list shall henceforth have the option of receiving Naira payments in addition to USD and eNaira as payout options.

“For the avoidance of doubt, International Money Transfer Operators are required to pay out the proceeds using the Investors’ & Exporters’ window rate as the anchor rate on the day of the transaction.