The Central Bank of Nigeria (CBN) has issued a letter to all Deposit Money Banks (DMBs), International Money Transfer Operators (IMTOs), and the general public, announcing the inclusion of the Naira as a payout option for diaspora remittances. In the list are Western Union, World Remit Limited, CashPot Limited, eTransact International Limited, Leadremit Limited, Flutterwave Technology Solutions Limited, and Interswitch Limited. Others are Belyfted Limited, Caperemit UK Limited, Chime In (Sendwave), Colony Capital Limited, Comet Trading Nigeria Limited, CSL Pay Limited, CP Express Limited, among others.
In a circular referenced TED/FEM/PC/GEN/01/011, dated November 30, 2020, the CBN introduced the payout option in response to the increasing need for flexibility in remittance receipt.
The recent announcement expands the range of payout options available to recipients of diaspora remittances through CBN-approved IMTOs.
Recipients will now have the option to receive their remittance proceeds in Naira, in addition to the existing options of USD and eNaira.
According to CBN, the inclusion of Naira as a payout option aims at providing recipients with increased convenience and accessibility to their funds.
To ensure transparency and consistency, the CBN also mandated that IMTOs to use the Investors’ & Exporters’ Window rate as the anchor rate on the day of the transaction when paying out the remittance proceeds.
This measure is intended to align with prevailing market rates and promote fair value for recipients.
The CBN urged all the relevant bodies to take note and ensure compliance with the updated guidelines, adding that the new regulation takes immediate effect.
