This policy aligns with Memorandum 17 of the CBN Foreign Exchange Manual (2018) and reinforces the central bank’s commitment to enhancing the country’s financial ecosystem.
Abuja, Nigeria – The Central Bank of Nigeria (CBN) has launched two new account types specifically designed for Nigerians living abroad: the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA).
This initiative aims to boost diaspora engagement in Nigeria’s economy while offering secure and flexible financial solutions.
In a circular signed by Dr. W. J. Kanya, Acting Director of the Trade and Exchange Department, the CBN detailed the features and benefits of these accounts. The NRNOA allows Nigerians abroad to remit foreign earnings such as salaries, dividends, and rental income into accounts held in freely convertible currencies approved by the CBN. Account holders can also manage funds in Naira for personal expenses like family maintenance, education, and healthcare.
The NRNIA, on the other hand, focuses on investment opportunities within Nigeria. It enables diaspora investors to access foreign and local currency financial instruments, including government securities, equities, fixed deposits, and foreign currency bonds.
Key Features and Benefits
Both account types provide significant flexibility and access:
- NRNOA: Balances in foreign currency can be fully repatriated without restrictions. Funds can also be converted to Naira at prevailing exchange rates, and interest earned will be subject to applicable Nigerian tax laws.
- NRNIA: Investment principal and profits are fully repatriable, offering a seamless pathway for diaspora participation in financial markets, Nigeria’s Diaspora Bond, and other debt instruments. Tax obligations will apply, except for exemptions like government bonds.
- The accounts align with international Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) standards to ensure secure transactions.
Eligibility and Onboarding
Eligibility criteria include proof of Nigerian citizenship through a valid or expired Nigerian passport or parentage, as well as documentation such as salary slips or business registration papers. The CBN will leverage digital platforms to simplify the onboarding process and Know Your Customer (KYC) updates, with integration through the Nigeria Inter-Bank Settlement System (NIBSS) for acquiring Bank Verification Numbers (BVNs).
Local transfers in Nigeria are restricted to Naira, and local deposits are prohibited except for traceable proceeds from approved investments.
Economic Impact
The CBN emphasized that these accounts will provide Nigerians in the diaspora with direct access to local economic opportunities while reducing reliance on intermediaries for managing obligations in Nigeria. By integrating with Nigeria’s financial markets, the NRNIA and NRNOA are expected to drive increased diaspora contributions to national development.
The new accounts will be available from January 1, 2025, with additional details to be provided in an upcoming Frequently Asked Questions (FAQs) document.
This policy aligns with Memorandum 17 of the CBN Foreign Exchange Manual (2018) and reinforces the central bank’s commitment to enhancing the country’s financial ecosystem.
Join our Channel...