CBN stops Naira for dollar scheme, directs international money transfer operators to pay in Naira

The Central Bank of Nigeria (CBN) has directed International Money Transfer Operators (IMTOs) to pay the Naira equivalent of dollars received through Diaspora remittances to local beneficiaries. Money transfered in the past were paid in the foreign currency in which they were transferred. The CBN in a bid to encourage remittances had introduced a policy in which for every dollar remitted home was given a N5 incentive. The Trade and Exchange Department of the CBN in a circular to the 62 approved IMTOs, banks, and the public directs them to carry out the instructions immediately. The circular, signed by CBN Director of Trade and Exchange, O.S Nnaji, listed 62 approved IMTOs

In the list are the Western Union, World Remit Limited, CashPot Limited, eTransact International Limited, Leadremit Limited, Flutterwave Technology Solutions Limited, and Interswitch Limited. Others are Belyfted Limited, Caperemit UK Limited, Chime In (Sendwave), Colony Capital Limited, Comet Trading Nigeria Limited, CSL Pay Limited, CP Express Limited, among others. The circular titled: Payout Option in Naira Receipt of Proceeds of Diaspora Remittances, said: “Further to the circular referenced TED/FEM/FPC/GEN/01/011 dated November 30, 2020 in respect of the above subject, the Central Bank of Nigeria hereby announces Naira as a payout option for receipts of proceeds of International Money Transfers. 

Accordingly, all recipients of diaspora remittances through the CBN approved IMTOS on the attached list shall henceforth have the option of receiving Naira payment in addition to USD and eNaira as payout options. For the avoidance of doubt, International Money Transfer Operators are required to pay out the proceeds using the Investors & Exporters’ Window rate as the anchor rate on the day of the transaction. This regulation takes effect immediately. Please note and ensure compliance,” CBN said.