CBN orders banks to close naira remittances ledgers

The Central Bank of Nigeria (CBN) has mandated Deposit Money Banks (DMBs) to close all ‘Naira General Ledgers’ used by the lenders to remit naira to Diaspora remittances beneficiaries.

CBN Governor, Godwin Emefiele who gave the directive to DMBs in his remarks titled:  “Improving Remittance Inflows into Nigeria” said the Naira General Ledgers were channels through which the naira remittances were hitherto carried out.

The apex bank has also configured the key IT infrastructure in banks, International Money Transfer Operators- IMTOs- which include Western Union, Moneygram and Ria services for remittances collection.

The apex bank boss said analyzed data on IMTOs inflows into the country over the past year, and through investigations discovered that some IMTOs, rather than compete on improving transaction volumes and create more efficient ways for Nigerians in the Diaspora to remit funds, resorted to engaging in arbitrage arrangements on the naira-dollar exchange rate, which to a large extent resulted in a significant drop in flows into the country.