The Central Bank of Nigeria Gonernor, Godwin Emefiele, has rolled out its policy to improve diaspora remittances into the country, starting December 4, 2020, this was made known in his remark on “Improving Remittance Inflows Into Nigeria” obtained from the apex bank’s official website.
Emefiele explains that the apex bank is on a mission “to liberalise, simplify and improve the receipt and administration of the diaspora remittances into Nigeria,” and CBN says the policy benefits will be glaring.
“Beneficiaries of diaspora remittances through International Money Transfer Operators (IMTOs) shall henceforth receive such inflows in foreign currency (US dollars) through the designated bank of their choice.
“Such recipients of remittances may have the option of receiving these funds in foreign currency cash (US dollars) or into their ordinary domiciliary accounts.
“These changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of diaspora remittances into Nigeria,” he stated.
The CBN boss stated the benefits of the policy include financing future stream of investment opportunities for Nigerians in the diaspora and at the same time, guarantee that recipients of remittances would receive a market-reflective exchange rate for their inflows.
The policy also guarantees beneficiaries “unfettered access and utilisation to such foreign currency proceeds either in FX cash and/or in their domiciliary accounts.”
Despite the extent to make good the policy Emefiele said; “In the course of following up on the implementation of the aforementioned new policies, the CBN observed some pushback by some of the international money transfer operators (IMTOs) who were on undermining the new policies.
“This was the reason the CBN had to insist that all DMBs must close all Naira General Ledgers through which the Naira remittances were hitherto being carried out.
“In an effort to enable smooth implementation of the policy, CBN has engaged with the commercial banks and the IMTOs to ensure that recipients of remittance inflows are able to receive their funds in the designated foreign currency of their choice,” he stated.
The CBN said these engagements, which took place with major IMTOs and the deposit money banks (DMBs), have committed the stakeholders “that they would deploy all the necessary tools to ensure that measures become effective from Friday, December 4.2
“I therefore seize this opportunity to announce to Nigerians both at home and in the diaspora that the policy of recipients receiving their monies from abroad kicks off on Friday,” he stated.
He the policy sprout from internal review of the operations of IMTOs and the potential impact improved flows could have on the economy. He also pointed out that the IT systems of the IMTOs (Western Union, Moneygram and Ria services) and the DMDs had ben configured to begin such remittances.
Enthused CBN helmsman, said: “We will also ensure that these funds can contribute to the overall development of our economy.”