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Central Bank Of Nigeria (CBN), Provides New Guidelines On Foreign Remittances and Domiciliary Accounts

Central Bank Of Nigeria clarifies position on operation of domiciliary accounts
Central Bank Of Nigeria

Majority of business owners operating Foreign and Domiciliary Accounts have previously lamented the business regulations and guidelines put in place by the central bank of Nigeria, especially with how it restricts businesses and hinders free flow of transactions amongst business partners.

However, reports have revealed that things have begun to take a new dimension as with the new relaxation on some of these guidelines.

Recently The Central Bank of Nigeria (CBN) has announced that beneficiaries of Diaspora remittances through the international monetary transfer operators (IMTO) shall now have such inflows in foreign currency (US dollar) through the designated bank of their choice.

The announcement by CBN, was disclosed in a statement on Monday the 30th of November and was endorsed by The Director of Trade And Exchange of CBN, Dr. O. S. Nnaji.

In the press release which was titled “Amendment to Procedures of Diaspora Remittances”, it was revealed by the Director that these guidelines were necessary in an effort to liberalise, simplify and improve the receipt and administration of Diaspora remittances into Nigeria.

The statement explained that all recipients of such remittances may have the option of receiving such funds in the foreign currency cash or into their domiciliary account. According to CBN;

“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,” the statement read.

“In addition, these changes would also help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients would receive a market reflective exchange rate for the market.”

Furthermore, the apex bank also disclosed that beneficiaries shall have free and unlimited access to utilising such foreign currency proceeds, either in cash and or in their domiciliary accounts as the need may be.

CBN, also believes that these new regulations will enable operators of export domiciliary accounts to continue to function and operate based on already existing guidelines which would enable account holders to use their funds for business operations only with any extra funds sold in the import and export window.

Moreso, account holders of ordinary domiciliary accounts where accounts are funded electronically or wire transfer, would be permitted to operate without restrictions and given freedom to use of these funds for eligible transactions. And where accounts are funded by cash deposits then existing regulation will continue to apply.

This new regulations come as a welcomed development for Business owners and entrepreneurs within and outside the federation because it will create genuine room for clarity in business dealings and exchange remittances as well as also create a more convenient and conducive business atmosphere which would in turn boost the economic development for the nation and create more revenues in market reflects and exchange rates,

Gift Joseph Okpakorese

Staff Writer


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