The Central Bank of Nigeria (CBN) has imposed a new restriction on the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA). Starting from January 10, 2025, the CBN now prohibits local deposits into these accounts. Instead, the focus will be on external inflows from Nigerians living abroad.
This decision by the CBN is part of an effort to channel foreign remittances and investments into Nigeria’s economy. The goal is to ensure that the accounts fulfill their intended purpose. Deposits must come from approved external sources. Local deposits are allowed only when linked to prior foreign currency inflows or approved investments.
The NRNOA and NRNIA accounts help Nigerians abroad manage their funds and invest in Nigeria’s financial markets. The NRNOA lets non-resident Nigerians send foreign earnings, such as salaries and allowances, to support family needs. The NRNIA allows diaspora members to invest in Nigeria’s markets, including bonds, equities, and government securities.
The CBN’s restriction ensures these accounts are used only for their intended purpose: facilitating remittances and diaspora investments. Local transactions will no longer affect the integrity of these accounts. Transfers from these accounts to local Nigerian ones will only be allowed in Naira, and funds must come from foreign currency sources.
This restriction aligns with the CBN’s broader goal to increase Nigeria’s foreign capital inflows. It also ensures compliance with global standards on anti-money laundering and counter-terrorism financing. To improve accessibility for Nigerians abroad, the CBN is partnering with the Nigeria Inter-Bank Settlement System (NIBSS) to offer digital solutions for account management, including remote Know-Your-Customer (KYC) updates and Bank Verification Number (BVN) services.
This new policy is a step toward creating a more transparent financial framework for Nigerians abroad. While the policy may create some challenges, it’s designed to ensure that these accounts contribute effectively to Nigeria’s economic growth. The focus on foreign currency inflows will help strengthen the nation’s financial position.
In conclusion, the CBN’s move to block local deposits in diaspora accounts is aimed at maximizing foreign remittances and investments. The policy, along with the integration of digital solutions, will streamline the account management process and further encourage contributions to Nigeria’s financial development.