The Central Bank of Nigeria (CBN) has prohibited native deposits into the newly launched Non-Resident Nigerian Abnormal Account (NRNOA) and Non-Resident Nigerian Funding Account (NRNIA), designed to cater particularly to Nigerians residing overseas.
This directive, outlined in a round issued by the apex bank on January 10, 2025, highlights the CBN’s deal with channelling exterior inflows and diaspora investments into the nation’s economic system.
Signed by Dr W. J. Kanya, the appearing Director of the Commerce and Trade Division, the round acknowledged, “Deposits into non-resident accounts should originate from exterior sources by way of authorised channels. Native deposits are prohibited, apart from traceable proceeds from authorised native investments linked to prior international foreign money inflows and settlement of international alternate transactions i.e. sale of FCY balances to authorised sellers.
“Transfers to different native accounts inside Nigeria are allowed solely in Naira.”
The restriction is a part of a broader framework to make sure the accounts serve their supposed goal of boosting remittances and investments from the diaspora.
Accounts designed to drive diaspora contributions
The NRNOA and NRNIA accounts intention to offer Nigerians within the diaspora with safe platforms to handle funds and put money into Nigeria’s monetary markets.
- The NRNOA permits non-resident Nigerians (NRNs) to remit international earnings into the nation and handle funds in both international foreign money (FCY) or naira.
- These earnings might embody salaries, allowances, dividends, and rental revenue. Additionally, the NRNOA helps native spending on household upkeep, training, and healthcare.
- Alternatively, the NRNIA is designed to facilitate diaspora investments in Nigeria, permitting NRNs to put money into property denominated in international foreign money or Naira. Eligible investments embody home bonds, equities, authorities securities, mortgage merchandise, and the Diaspora Bond.
The CBN highlighted that these accounts would supply larger flexibility for NRNs to diversify their funding portfolios whereas contributing to Nigeria’s financial growth.
To make sure compliance with this framework, the CBN has outlined strict tips for native transfers. Transfers from these accounts to different native accounts inside Nigeria are permitted solely in Naira, with no provision for such funds to originate domestically until linked to authorised funding proceeds.
The CBN clarified that this measure is crucial to keep up the integrity of the accounts as instruments for exterior remittances and diaspora investments.
Framework to boost compliance and transparency
The apex bank has additionally emphasised the mixing of digital platforms to facilitate seamless onboarding and account administration. Partnering with the Nigeria Inter-Bank Settlement System (NIBSS), banks are mandated to supply digital options for issuing Bank Verification Numbers (BVNs) and enabling distant Know-Your-Buyer (KYC) updates.
- These measures are anticipated to boost the accessibility and value of the accounts for Nigerians within the diaspora.
- Eligibility for these accounts requires proof of residency and id, resembling a legitimate or expired Nigerian passport, or a international passport accompanied by proof of Nigerian citizenship. Buyers primarily based in the US should additionally adjust to IRS FATCA rules.
- The prohibition on native deposits displays the CBN’s technique to maximise exterior inflows into the Nigerian economic system.
- By proscribing the sources of funding for these accounts, the CBN goals to create a clear and environment friendly framework that aligns with world Anti-Cash Laundering (AML) and Counter-Terrorism Financing (CTF) requirements.
- Curiosity earned on these accounts can be topic to Nigerian tax legal guidelines, whereas particular exemptions, resembling these for presidency bonds, can be detailed in a Often Requested Questions (FAQ) doc anticipated to be launched quickly.
Be First to Comment