CBN Directs International Money Transfer Operators to Pay Remittances in Naira

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CBN Directs International Money Transfer Operators to Pay Remittances in Naira
CBN Sets Naira as Preferred Currency for Remittance Payments

In a recent development, the Central Bank of Nigeria (CBN) has issued a directive to International Money Transfer Operators (IMTOs) to initiate remittances payout in the local currency, Naira, to beneficiaries. This move aims to streamline the process and ensure a more convenient method for recipients to receive their funds.

Additionally, the CBN has specified that the rate for the Naira payout should be determined using the foreign exchange rate of the Investors’ and Exporters’ Window. This decision is expected to provide a transparent and market-driven exchange rate for remittance recipients.

The guidelines were outlined in a CBN circular bearing the reference number FED/FEM/PUB/FPC/001/004, which was issued by Dr. Ozoemena Nnaji, the Director of Trade and Exchange. This circular, dated July 10, 2023, builds upon a previous directive released on November 30, 2022, under the reference number FED/FEM/FPC/01/011. The earlier circular had provided the initial guidelines for the payout policy of Diaspora remittances to beneficiaries in Nigeria.

The Central Bank emphasized that the Naira payment option is an addition to the existing methods of receiving remittances, which include United States Dollars and E-Naira. By offering multiple alternatives, the CBN aims to accommodate the diverse preferences and needs of the beneficiaries.

This directive from the CBN marks a significant step towards simplifying and enhancing the remittance process for Nigerians. It is expected to contribute to the overall efficiency of cross-border fund transfers and provide greater flexibility for beneficiaries in managing their remitted funds.

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