The Central Bank of Nigeria (CBN) has lifted the ban on Naira payouts for diaspora remittance, allowing beneficiaries to receive their funds in Naira alongside USD and eNaira options. The decision, announced in a circular dated July 10, 2023, marks the end of the ban that had been in place since 2020.
According to the circular, the CBN has approved Naira as a payout option for recipients of international money transfers, with payment to be facilitated through the approved International Money Transfer Operators (IMTOs). The proceeds will be paid using the Investors’ & Exporters’ Window rate as the anchor rate on the day of the transaction.
The ban on Naira payouts was initially imposed in December 2020, which required banks and IMTOs to only transfer funds onward to recipients and prohibited direct Naira payments. However, the CBN introduced the Naira for Dollar Scheme in March 2021 as an alternative approach to encourage diaspora remittances through formal channels.
The latest policy shift allows customers to choose between receiving their funds in foreign currency, eNaira, or Naira, providing more flexibility in payout options. The CBN’s circular also includes an updated list of registered IMTOs in Nigeria, expanding from 47 in 2021 to 62.
This move by the CBN aims to promote formal channels for diaspora remittances, boost foreign exchange liquidity, and provide recipients with additional choices in how they receive their funds. It signifies a step toward relaxing the strict control over FX rates and facilitating a more inclusive and accessible remittance system in Nigeria.
