By Ade Jacobs
The Central Bank of Nigeria (CBN), has warned International Monetary Transfer Operators (IMTOs) to desist from paying diaspora remittances in naira contrary to its guidelines.
The apex bank released a guideline late last year where it directed IMTOs to pay foreign currency to beneficiaries’ accounts.
The CBN released the guidelines on December 2, 2020, after consultations and engagements with relevant stakeholders, which it said was aimed at providing a more convenient channel for Nigerians in diaspora to remit funds back to Nigeria.
“In the course of following up on the implementation of the aforementioned new policies, we observed some pushback by some of the IMTOs, which were bent on undermining the new policies. This was the reason the CBN had to insist on Wednesday, December 2, 2020, that all DMBs must close all Naira General Ledgers through which the Naira remittances were being carried out,” the CBN governor, Godwin Emefiele, said.
The apex bank took the measure to check the continued slide of the naira. But in a memo released on Friday titled Modalities for Payout of Diaspora Remittance, the CBN noted that the guideline has been flouted by money transferred firms.
“It has come to our notice that some IMTOs and unlicensed companies continue to facilitate diaspora remittances into the country in naira, in clear contravention to CBN directive that all remittances be paid to beneficiaries in dollars.
“For the avoidance of doubt, the CBN clarifies as follows; only licensed IMTOs are allowed to carry on with the business of facilitating diaspora remittances to Nigeria. All diaspora remittances must be received by beneficiaries in foreign currency only, cash/ transfer to domiciliary accounts of recipients. IMTOs are not permitted under any circumstance to disburse remittances in naira, either in cash or by electronic transfer, be it through naira remittances settlement accounts, which has been earlier directed to be closed, third party accounts or via any other payment platforms within and / or around the Nigerian financial system.
“These measures are intended to promote transparency, grow diaspora remittances and significantly improve foreign exchange inflows into Nigeria. Strict sanctions, including withdrawal of operating licenses, shall be imposed on any individuals and / or institutions found to be aiding, abetting or directly contravening these guidelines.
“For unlicensed operators, the CBN shall not hesitate to authorize the closure of their accounts in Nigeria banks, including being barred from accessing banking services in Nigeria. The CBN shall continue to monitor developments in this regard and will issue further guidance as appropriate.”