The Central Bank of Nigeria (CBN) recently released revised guidelines for International Money Transfer services in Nigeria. The guideline aims to liberalize the foreign exchange market, ensure transparency in foreign exchange transactions, boost diaspora remittances and other foreign capital inflows to Nigeria, promote efficient price discovery mechanisms and the evolution of an appropriate market-determined exchange rate, and enhance the ease of doing business for International Money Transfer Operators. You can find a summary of the new guidelines here.

In its circular dated 24th June 2024, the CBN announced measures aimed at ensuring wider access to our local currency for timely settlement of diaspora remittances. These measures apply to International Money Transfer Operators (IMTOs), authorized dealer banks, and the CBN. The objective is to facilitate the smooth functioning of the foreign exchange markets and enable increased remittance flow through formal channels.

This article will examine the new measures put in place by the CBN for the settlement of diaspora remittances.

NEW MEASURES FOR SETTLEMENT OF DIASPORA REMITTANCES

1. Transactions or transfers confirmed before 12 noon on a trading date can enjoy same-day settlement.

2. The pricing for forex transactions conducted with the CBN will be determined based on the prevailing Nigerian Autonomous Foreign Exchange Market (NAFEM) Rate.

3. All IMTOs and authorized dealer banks must submit returns including relevant information on the sources of funds to the CBN.

4. To ensure a smooth implementation of this initiative, all International Money Transfer Operators (IMTOs) must verify the standard settlement instructions with their partner banks and guide the banks accordingly.

The circular is expected to be implemented with immediate effect.

Need information for regulations governing the operation of International Money Transfer Operators in Nigeria? Please contact us through the Whatsapp icon on this page or send an email HERE, and we’ll respond to you.

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Cynthia Tishion

Cynthia is a lawyer and currently serves as Head of Corporate / Commercial Services at LEX – PRAXIS. With her passion for business and entrepreneurship, she is actively engaged in creating awareness on the legal aspect of businesses through various platforms such as writing, public speaking engagements.

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