Mohammed Shosanya
The Central Bank of Nigeria (CBN) has directed International Money Transfer Operators (IMTOs) to commence remittances pay-out in Naira to beneficiaries, in addition to foreign exchange.
The apex bank also directed that the Investors and Exporters’ Window foreign exchange rate should be used in determining the rate for such Naira pay-out,according to a CBN circular referenced: FED/FEM/PUB/FPC/001/004 issued by the Director of Trade and Exchange. Dr. Ozoemena Nnaji.
The new circular, dated July 10, 2023, was in furtherance to an earlier circular dated November 30, 2022 with reference number: FED/FEM/FPC/01/011 which provided guidelines on the payout policy of Diaspora remittances to beneficiaries back home.
The previous circular introduced the payment of dollars to beneficiaries of diaspora remittances through the international money transfer operators (IMTO) through the designated bank of their choice and with unrestricted access to their funds
According to the new circular, the Naira payment was only an option, in addition to United States Dollars and E-Naira in receiving Diaspora remittances.
It reads: “Further to the circular referenced FED/FEM/FPC/01/011 dated November 30, 2022 in respect of the above subject, the Central Bank of Nigeria hereby announces Naira as a payout option for receipts of proceeds of International Money Transfers.
“Accordingly, all recipients of Diaspora remittances through the CBN-approved International Money Transfer Operators (IMTOs) on the attached list shall henceforth have the option of receiving Naira payment in addition to USD and e-Naira as payout options.
“For the avoidance of doubt, IMTOs are required to pau out the proceeds using the Investors’ & Exporters’ window rate as the anchor rate on the date of the transaction.The regulation takes effect immediately.”
