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CBN Prohibits Local Deposits for New Diaspora-Focused Bank Accounts

 

The Central Bank of Nigeria (CBN) has announced that local deposits will not be allowed in two newly launched bank accounts designed for Nigerians living abroad. These accounts, known as the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA), are aimed at boosting diaspora remittances and investments in the country.

 

The CBN made this decision clear in a circular issued on January 10, 2025, signed by Dr. W.J. Kanya, the acting Director of the Trade and Exchange Department. According to the directive, deposits into these accounts must come from external sources, such as foreign earnings sent through approved channels. The only exception for local deposits is if the money comes from approved investments made earlier with foreign currency.

 

Transfers from these accounts to other local accounts in Nigeria are permitted only in naira.

 

The NRNOA and NRNIA accounts are designed to help Nigerians in the diaspora send money home and invest in Nigeria’s economy.

– The NRNOA allows non-resident Nigerians to manage their funds in both foreign currency and naira. It can be used for purposes such as family support, education, and healthcare expenses.

– The NRNIA enables diaspora investments in assets such as government bonds, equities, and mortgages.

 

The CBN says these accounts will give Nigerians abroad more opportunities to invest and contribute to the country’s economic growth.

 

The restriction on local deposits is part of the CBN’s plan to make sure these accounts serve their purpose of attracting foreign inflows. It is also a step to ensure compliance with global standards on Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF).

 

The CBN is working with banks and the Nigeria Inter-Bank Settlement System (NIBSS) to make these accounts easier to manage through digital platforms. Banks are required to offer online services for account opening, Bank Verification Number (BVN) issuance, and remote identity verification (KYC).

 

To open these accounts, Nigerians living abroad must provide proof of residency and identity, such as a Nigerian passport or documents showing Nigerian citizenship.

 

The new rules are intended to increase foreign remittances into Nigeria and ensure transparency in financial transactions. By allowing deposits only from external sources, the CBN hopes to strengthen the country’s foreign exchange reserves and boost investments from the diaspora.

 

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