CBN Launches Non-Resident Account for Nigerians in Diaspora to Invest in Local Assets

CBN Launches Non-Resident Account for Nigerians in Diaspora to Invest in Local Assets

The Central Bank of Nigeria (CBN) has introduced two innovative financial products designed to attract Nigerian citizens living abroad. The Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA) aim to provide new opportunities for the diaspora community to engage with the Nigerian economy.

The launch was officially announced on Friday via a circular signed by W.J. Kanya, Acting Director of the Trade and Exchange Department at the CBN.

According to the apex bank, the NRNOA enables Non-Resident Nigerians (NRNs) to remit their foreign earnings to Nigeria while managing funds in both foreign and local currencies.

“The NRNOA enables Non-Resident Nigerians (NRNs) to remit their foreign earnings to Nigeria and manage funds in both foreign and local currencies, while the NRNIA enables Non-Resident Nigerians (NRNs) to invest in assets in Nigeria in either foreign currency (FCY) or local currency (Naira),” the circular reads.

CBN further explained that account holders could maintain both a foreign currency (FCY) account and/or a local currency (Naira) account to facilitate transactions and take advantage of diverse investment opportunities.

The CBN highlighted several advantages of the accounts, emphasising improved access for diasporans to participate in Nigeria’s economic opportunities.

“NRNs can use their NRNIA to participate in Nigeria’s Diaspora Bond and other debt instruments issued locally specifically targeted at the Nigerian diaspora or available to the investing public,” the statement added.

The accounts will also enable NRNs to directly manage their funds in a safe and secure environment, reducing reliance on third parties to meet local commitments and obligations.

Starting January 1, 2025, eligible NRNs will be able to open these accounts, subject to Know Your Customer (KYC) requirements. The CBN has promised to release detailed Frequently Asked Questions (FAQs) to guide potential account holders.

This new policy aligns with the existing provisions of Memorandum 17 of the CBN Foreign Exchange Manual (2018).

On October 24, 2024, the CBN announced its intention to introduce the Non-Resident Bank Verification Number (NRBVN) for Nigerians in the diaspora by December 2024. The initiative was unveiled during a forum themed “Optimising Remittances to Nigeria: A Vision for the Future,” where Muhammad Sani Abdullahi, Deputy Governor (Economic Policy) at CBN, emphasised the need to enhance remittance flows and fortify Nigeria’s financial sector.

Remittances from the Nigerian diaspora remain a critical source of financial inflows, averaging $20.5 billion annually over the past decade, according to the World Bank. However, the CBN noted that a substantial portion of these funds is channelled toward immediate consumption rather than long-term investments that could drive sustainable economic growth.

The new accounts represent a strategic move to redirect remittance flows toward developmental projects, thereby leveraging diaspora contributions for national progress.

The CBN’s efforts, in collaboration with financial stakeholders, underline a commitment to ensuring that remittances are not only secure but also effectively utilised to foster economic growth. As the policies take effect, Nigerians in the diaspora are encouraged to explore these opportunities to contribute meaningfully to the nation’s development.