The International Money Transfer Operators (IMTOs) have been ordered by the Central Bank of Nigeria (CBN) to start sending beneficiaries remittances in Naira in addition to foreign currency.

Additionally, it has mandated that the rate for such Naira payouts be determined using the Investors and Exporters' Window foreign currency rate.

The Director of Trade and Exchange issued a CBN circular with the following reference: FED/FEM/PUB/FPC/001/004. Ozoemena Nnaji, M.D.

According to CBN, the new circular, issued July 10, 2023, was a continuation of an earlier circular, dated November 30, 2022, with reference number: FED/FEM/FPC/01/011 which set forth rules on the payout policy of beneficiaries receiving remittances from the diaspora.

The payment of dollars to recipients of diaspora remittances through international money transfer operators (IMTO) through the selected bank of their choosing and with unlimited access to their funds was made official by that November 30, 2022 circular.

The Naira payment was only one of three options for receiving remittances from the diaspora, along with US dollars and E-Naira, according to the latest circular.

"Further to the circular referenced FED/FEM/FPC/01/011 dated November 30, 2022 in respect of the foregoing subject, the Central Bank of Nigeria hereby announces Naira as a payout option for receipts of proceeds of International Money Transfers," the circular's complete text reads.

“Accordingly, all recipients of Diaspora remittances through the CBN-approved International Money Transfer Operators (IMTOs) on the attached list shall henceforth have the option of receiving Naira payment in addition to USD and e-Naira as payout options.

“For the avoidance of doubt, IMTOs are required to pau out the proceeds using the Investors’ & Exporters’ window rate as the anchor rate on the date of the transaction.

“The regulation takes effect immediately.”

Recall that the CBN announced the consolidation of all forex market segments in Nigeria by merging all windows into the Investors & Exporters (I&E) window in the middle of last month.

The action was seen as a part of the new administration's initiatives to increase market stability and liquidity by luring foreign capital into the Nigerian economy.

The RT200 program and the Naira4dollar remittance plan were both discontinued by the apex bank last month.

Recall that the CBN announced the consolidation of all forex market segments in Nigeria by merging all windows into the Investors & Exporters (I&E) window in the middle of last month.

The action was seen as a part of the new administration's initiatives to increase market stability and liquidity by luring foreign capital into the Nigerian economy.

The RT200 program and the Naira4dollar remittance plan were both discontinued by the apex bank last month.