Diaspora Remittances: CBN flays continued remittances in Naira contrary to its directive

Date:

Lagos, Jan. 22, 2021 The CBN has expressed displeasure over continued diaspora remittances into the country in Naira, instead of dollars, by International Money Transfer Operators (IMTOs) and unlicensed companies, contrary to its directives.

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Dr O.S. Nnaji, Director Trade and Exchange Department of CBN, said in a circular, on Friday, that the action contravened the apex bank’s directive that all remittances be paid to beneficiaries in dollars.

The circular, entitled, “Modalities For Payout of Diaspora Remittances”, was posted on the CBN website on Friday.

” Further to our circular titled” Receipt of Diaspora Remittances: Additional Operational Guidelines “, it has come to our notice that some IMTOs and unlicensed companies continue to facilitate diaspora remittances into the country in Naira, “in clear contravention of the Central Bank of Nigeria directive that all remittances be paid to beneficiaries in dollars,” it said.

The circular clarified that only licensed IMTOs were permitted to carry on the business of facilitating Diaspora remittances into Nigeria, stressing that all diaspora remittances must be received by beneficiaries in foreign currency only, whether via cash and/or transfers to domiciliary accounts of recipients.

The CBN said: IMTOs are not permitted, under any circumstances, to disburse diaspora remittances in Naira ( either in cash or by electronic transfers) be it through naira remittance settlement accounts, which had been directed to closed, third party accounts or via any other payment platforms within and/or around the Nigeran financial system.

It said that the measures were intended to promote transparency, grow diaspora remittances and significantly improve foreign exchange inflows into Nigeria.

The bank said that strict sanctions, including withdrawal of operating licenses, shall be imposed on any individuals and/or institutions found to be aiding, abetting or directly contravening these guidelines.

For unlicensed operators, the CBN said it shall not hesitate to authorize the closure of their accounts in Nigerian banks, including being barred from accessing banking services in Nigeria.

It promised continued monitoring of developments in this regard, adding that it would also issue further guidance as appropriate.

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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