This directive also includes the utilization of the
Investors’ and Exporters’ Window foreign exchange rate to determine the rate
for Naira payouts.
The circular, dated July 10, 2023, and referenced as
FED/FEM/PUB/FPC/001/004, was issued by Dr. Ozoemena Nnaji, the Director of
Trade and Exchange at the CBN. It serves as an extension of a previous circular
dated November 30, 2022 (reference number: FED/FEM/FPC/01/011), which outlined
guidelines for the payout policy of Diaspora remittances to beneficiaries in
Nigeria.
The November 30, 2022 circular introduced the payment of
dollars to beneficiaries of diaspora remittances through IMTOs via their chosen
designated banks, allowing unrestricted access to the funds. The new circular
now offers the Naira as an additional option, alongside the United States
Dollars and E-Naira, for receiving Diaspora remittances.
The circular states, “Further to the circular referenced
FED/FEM/FPC/01/011 dated November 30, 2022, regarding the subject mentioned
above, the Central Bank of Nigeria hereby announces Naira as a payout option
for proceeds from International Money Transfers.
Accordingly, all recipients of Diaspora remittances through
the CBN-approved International Money Transfer Operators (IMTOs) listed in the
attachment shall now have the option of receiving Naira payment, in addition to
USD and e-Naira.”
To ensure clarity, the circular highlights that IMTOs must
process the pay-outs using the Investors’ & Exporters’ window rate as the
anchor rate on the transaction date. This regulation is effective immediately.
Last month, the apex bank discontinued the RT200 program and
the Naira4dollar remittance scheme. Introduced in 2021, the Naira4Dollar scheme
provided an incentive of N5 for every USD1 remitted by the sender and received
by the designated beneficiary, facilitated through commercial banks.
The scheme successfully encouraged more remittances and
steady foreign exchange inflows into the country.
The RT200 program, consisting of various plans, policies,
and programs, aimed to boost the nation’s earnings exclusively from non-oil
exports, with the target of $200 billion in foreign exchange repatriation
within the next five years.