The Central Bank of Nigeria (CBN) has unveiled two new financial products aimed at providing Nigerians in the diaspora with enhanced access to banking and investment opportunities in the country. The announcement, made in a circular issued on Friday by W.J. Kanya, Acting Director of the Trade and Exchange Department, introduced the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA).
The NRNOA allows non-resident Nigerians (NRNs) to remit foreign earnings to Nigeria and manage their funds in both foreign and local currencies. On the other hand, the NRNIA offers NRNs a platform to invest in Nigerian assets, with options to operate in foreign currency (FCY) or local currency (Naira).
“Account holders may maintain both a foreign currency account and/or a local currency account to facilitate transactions and participate in diverse investment opportunities,” the circular stated.
Key Benefits for Diaspora Nigerians
The CBN highlighted several advantages of the new accounts:
• Economic Participation: Diaspora Nigerians will have improved access to the Nigerian economy, enabling them to contribute more significantly to the country’s socio-economic development.
• Direct Investments: Through the NRNIA, account holders can invest in Nigeria’s Diaspora Bond and other locally issued debt instruments.
• Secure Fund Management: The accounts provide a safe and direct way for NRNs to manage their funds, reducing reliance on intermediaries for meeting local obligations.
“This initiative will not only enhance the contribution of Nigerians in the diaspora to the country’s economic development but also provide them with a secure and streamlined means of engaging in local financial activities,” the CBN stated.
Implementation Timeline and Additional Features
The accounts will be available to eligible Nigerians in the diaspora starting January 1, 2025, subject to Know-Your-Customer (KYC) requirements. Details of these requirements will be provided in a forthcoming FAQ release.
This policy builds on the CBN’s recent announcement of the Non-Resident Bank Verification Number (NRBVN), set to launch in December 2024. The NRBVN will enable Nigerians abroad to complete KYC processes remotely, ensuring compliance with global anti-money laundering (AML) standards while simplifying access to Nigerian banking services.
The CBN emphasized that the introduction of the NRNOA and NRNIA is “without prejudice to Memorandum 17 of the CBN Foreign Exchange Manual (2018),” signaling its commitment to maintaining regulatory alignment.
A Boost for the Nigerian Economy
This strategic move is expected to deepen the engagement of diaspora Nigerians in the nation’s economy, offering a reliable avenue for remittances and investments. It reflects the CBN’s ongoing efforts to foster financial inclusion and leverage the economic potential of the Nigerian diaspora.
For more details, interested parties are advised to monitor updates from the CBN, including the forthcoming FAQ document.