Nigeria: CBN chief says, "significant drop in flows into the country"

The International Money Transfer operators (IMTO) have been shortchanging the beneficiaries by delivering in naira and using the hard currency to attack it, despite an evaluated annual diaspora remittance of $24 billion, according to a report by Today Ng.

The major IMTOs and bank reportedly met with the Central Bank of Nigeria (CBN) earlier on Thursday ensuring the tools to deploy new measures on diaspora remittances effective from Friday4 December 2020.

Godwin Emefiele, the governor of the Central Bank of Nigeria shared the measures to improve remittance inflows in the conference quoting, "we analyzed data on IMTO inflows into the country over the past year, and through our investigations discovered that some IMTOs, rather than compete on improving transaction volumes and create more efficient ways for Nigerians in the Diaspora to remit funds, resorted to engaging in arbitrage arrangements on the naira-dollar exchange rate, which to a large extent resulted in a significant drop in flows into the country."

He explained that the provided estimated annual remittance inflow would help to improve the country's balance of payment (BOP) position and reduce its external borrowing dependency and it will mitigate the regressive impact of COVID-19 on foreign exchange inflows.

He said, "such recipients of remittances may have the option of receiving these funds in foreign currency cash (US Dollars) or into their ordinary domiciliary account."

Emefiele added that the implemented changes would deepen the market of foreign exchange causing more liquidity and transparency in the Diaspora Remittances' administration into Nigeria.

Remarks by #CBN Gov. Mr. Godwin #Emefiele on Improving Remittance Inflows into Nigeria...https://t.co/xfcYH1ZWRQ

— Central Bank of Nigeria (@cenbank) December 3, 2020

"In addition, these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients of remittances would receive a market-reflective exchange rate for their inflows. All Authorized Dealers and the general public should note that beneficiaries shall have unfettered access and utilization to such foreign currency proceeds, either in FX cash and/or in their Domiciliary Accounts, in line with our circular TED/FEM/FPC/ GEN/01/010", he added.