In an effort to draw in Nigerian nationals who live overseas, the Central Bank of Nigeria (CBN) has introduced two new financial products: the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA).
These accounts would strengthen NRNs’ access to opportunities in the Nigerian economy and increase their contribution to the nation’s socioeconomic growth, the CBN stressed in a statement issued on Friday.
The CBN claims that these accounts will give NRNs a safe space to handle their money on their own, lessening their need on outside organizations for local responsibilities.
Eligible NRNs may open these accounts as of January 1, 2025, provided they fulfill the Know Your Customer (KYC) standards outlined in a forthcoming release of frequently asked questions (FAQs).
Non-resident Nigerians are permitted to manage finances in both local and foreign currencies and send their international earnings back to Nigeria under the NRNOA. In contrast, the NRNIA allows them to invest in Nigerian assets using either local or international currencies.
In order to streamline transactions and take advantage of investment opportunities, account holders can keep both foreign and naira accounts.
Balances in the overseas account can be fully repatriated without any restrictions, and interest received on deposits will be subject to appropriate federal taxes.
Through approved dealers, funds can also be freely converted into naira at the going rate.
The NRNIA ensures easy capital mobility by allowing the complete repatriation of investment principal and profits. This encourages better investment diversification by enabling account holders to easily invest in assets denominated in either local or international currencies.
When accompanied by a valid foreign passport or proof of domicile, Nigerian passports, whether valid or expired, may be accepted. As an alternative, a legitimate foreign passport proving one or both parents’ Nigerian citizenship may be presented.
Remittance optimization
Major Nigerian banks, the Nigeria Inter-Bank Settlement System (NIBSS), and International Money Transfer Operators (IMTOs) formed a team lead by the CBN in October 2024 to interact with the Nigerian Diaspora in Houston, Texas, in the United States.
The Deputy Governor (Economic Policy), CBN, Muhammad Sani Abdullahi, emphasized the objective of improving remittance flows and fortifying Nigeria’s financial system during the discussion with the title “Optimising Remittances to Nigeria: A Vision for the Future.”
The World Bank estimates that remittances have contributed $20.5 billion a year on average over the last ten years, making it a substantial source of financial inflows for Nigeria.
But instead of long-term investments that could spur economic growth, a sizable amount of these funds are allocated to current consumption.
By investigating how remittances might be more effectively utilized for national development, the CBN and important financial stakeholders hope to change this strategy.