To attract Nigerian nationals living abroad, the Central Bank of Nigeria (CBN) has launched two new financial products: the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA). In a statement released on Friday, the CBN emphasised that these accounts will enhance the ability of Non-Resident Nigerians (NRNs) to access opportunities within the Nigerian economy, while also enabling them to contribute to the nation’s socioeconomic growth.
The CBN stated that these new accounts would provide Non Resident Nigerians (NRN) with a secure way to manage their funds independently, reducing their reliance on external intermediaries for local transactions.
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These accounts are available to qualified NRNs as of January 1, 2025, provided they fulfil the Know Your Customer (KYC) requirements outlined in a forthcoming release of Frequently Asked Questions (FAQs).
NRNs to manage funds in local and foreign currencies
Non-resident Nigerians can manage monies in both local and foreign currencies and send their foreign earnings back to Nigeria through the NRNOA.
However, the NRNIA allows them to invest in Nigerian assets in both local and foreign currencies. This flexibility allows account holders to maintain both naira and foreign currency accounts, streamlining transactions and maximising investment opportunities.
Repatriation of funds
Balances in the overseas account may be fully repatriated without restrictions and interest received on deposits will be subject to appropriate federal taxes.
Through authorised dealers, funds can also be freely converted into naira at prevailing exchange rates.
Capital mobility is made easy for the NRNIA by the 100 percent repatriation of investment principal and profits. This promotes better investment diversity by enabling account holders to easily invest in assets denominated in either local or international currencies.
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Identification requirement
When paired with a valid foreign passport or proof of domicile, Nigerian passports, whether valid or expired, may be accepted.
As an alternative, a legitimate international passport proving one or both parents’ Nigerian citizenship may be presented.
CBN’s engagements with Nigerians abroad to boost remittance flows
Major Nigerian banks, the Nigeria Inter-Bank Settlement System (NIBSS), and International Money Transfer Operators (IMTOs) formed a team led by the CBN in October 2024 to interact with the Nigerian Diaspora in Houston, Texas, in the United States.
Muhammad Sani Abdullahi, the CBN’s Deputy Governor (Economic Policy), highlighted the objective of improving remittance flows and fortifying Nigeria’s financial system during the discussion with the theme “Optimising Remittances to Nigeria: A Vision for the Future.”
According to the World Bank, remittances have contributed significantly to Nigeria’s fiscal inflows, averaging $20.5 billion per year over the previous ten years. But rather than being used for long-term investments that could spur economic growth, a sizable amount of these revenues are allocated to immediate consumption.
By examining how remittances might be more effectively utilised for national development, the CBN and important financial stakeholders hope to change this strategy.