The Central Bank of Nigeria (CBN) has announced the inclusion of the Naira as a payout option for recipients of diaspora remittances. In a recent circular, the CBN stated that individuals receiving remittances through approved International Money Transfer Operators (IMTOs) will now have the choice to receive their funds in Naira, alongside USD and eNaira.
The circular requires IMTOs to use the Investor & Exporter’s window rate as the anchor rate for payout transactions. As of the end of July 10, there are approximately 62 licensed IMTOs listed by the CBN.
This move follows the CBN’s previous efforts in November 2020 to enhance the receipt and administration of diaspora remittances by allowing beneficiaries to receive funds in foreign currency (USD) through their preferred banks or in their domiciliary accounts.
The introduction of the Naira payout option for diaspora remittances provides recipients with increased flexibility and choices when accessing their funds. It also aligns with the CBN’s ongoing initiatives to promote transparency and ease of transactions in the Nigerian financial system.
Opinion: The inclusion of the Naira as a payout option for diaspora remittances is a positive step by the CBN to provide recipients with more flexibility and convenience. This move not only caters to the preferences of remittance recipients but also aligns with the goal of promoting financial inclusion and strengthening the Nigerian economy. It is expected to further streamline the remittance process and encourage more inflows through official channels.