The Central Bank of Nigeria (CBN) has directed banks in the country to close all naira ledger accounts opened specifically for the purpose of receiving proceeds from international money transfer operator (IMTO) with immediate effect.

The apex bank, in a statement released on Wednesday, jointly signed by Bello Hassan, director banking supervision of the CBN, and O.S. Nnaji, director trade & exchange of the CBN, said IMTO beneficiaries/recipients are to receive their proceeds in foreign currency (USD) or have it deposited in their domiciliary account in a Nigerian bank.

“It is the sole discretion of the recipients to either choose foreign currency cash or have the proceeds deposited into their domiciliary accounts in Nigeria.” the statement said.

This is coming days after the CBN relaxed rules on foreign remittances and dom accounts.

The CBN had said the changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora remittances into Nigeria.

Under the new guidelines, operators of export domiciliary accounts will continue to operate based on existing regulations which allow account holders use their funds for business operations only with any extra funds sold in the import and export window.

Also operators of ordinary domiciliary accounts where accounts are funded electronically or wire transfer, would be allowed unfettered and unrestricted use of these funds for eligible transactions. And where accounts are funded by cash lodgments, existing regulation will continue to apply.

This regime ehnn... Odiegwu. All these trial and error policies ehn.

govt done chop edo people wey dey Italy money tire.
as the people come get sense decive a good way of sending their money home, na him buhari hands up.

When you get money sent to you from abroad in dollars, you most probably won't like to change that to Naira at the banks. The reason is simple; the banks most times uses the official exchange rate as the benchmark! Unfortunately for struggling families receiving such funds, the difference between the official exchange rate and the black market rates can be astonishingly high sometimes. Deu to the weird brand of free market we operate here, most times the black market reflect the actual mood of the Naira. For instance, around 2016, there were periods the difference was chasing over one hundred Naira. While the government stubbornly stuck with the official rates through the banks, the naira was on a free fall in the black market. Yet the government had fewer dollars to sell and the bankers were involved in all sorts of sharp practices as they sourced for dollars through official channels which they sold to black market operators with of course some "Mark ups" hovering between the official rate and the black market rates! Gaming the system, a lot of ordinary bankers became instant millionaires overnight through this scheme at the detriment of the country as forex remained high, leading to costly imports and of course subsequent inflation as it regards the retail prices for imported essentials.

The deductions from money sent from abroad to friends and family members in Nigeria is another evil that should be addressed by the Apex bank! It's way too high and many including unnecessary VATs. Bank charges on remitted funds are too high. I think in few countries I have witnessed this type of remittance, Nigeria is the country where the banks deduct so much, you start to wonder whether it's a crime to receive money from abroad! This has made senders to most times look for other alternative ways rather than utilizing ordinary wire transfers. And in some countries, especially in Asia there are several alternatives through which such funds can be remitted without that registering in the system. So in order to encourage money senders to send dollars directly to their kits and kins in Nigeria without worry and in bigger quantity, thereby increasing the volume of dollars remitted, the wrechless deductions/taxations should be checked.

Government willingness to allow locals receive money sent to them from abroad in dollars is a good idea. The reason is simple; it will provide more dollars to the black market operators who actually are the real operators in Nigeria since most importers from Nigeria are small scale importers who only need between say five to maybe one hundred thousand dollars for their small scale imports. Most don't even transmit their cash to the exporters in china through banks! They send through unconventional channels or carry that in their pockets and bags across airports while traveling to China, Vietnam, Thailand, Hong Kong, Dubai, Bangladesh etc. Immigration authorities in these countries are aware and in most cases look the other way when Nigerian travellers arrive with such huge raw cash. These strand of importers are either not that schooled in the process of applying for forex from the CBN or lack the patience as they can buy dollars from a local mallam and send that to say China through illegal operators within one hour! And they import most of the basics used in Nigeria today like clothes, households, shoes, articles etc.

CBN AND COMMERCIAL BANKS "CAT & MOUSE" TRANSACTIONS.

a

Rugaria:
When you get money sent to you from abroad in dollars, you most probably won't like to change that to Naira at the banks. The reason is simple; the banks most times uses the official exchange rate as the benchmark! Unfortunately for struggling families receiving such funds, the difference between the official exchange rate and the black market rates can be astonishingly high sometimes. Deu to the weird brand of free market we operate here, most times the black market reflect the actual mood of the Naira. For instance, around 2016, there were periods the difference was chasing over one hundred Naira. While the government stubbornly stuck with the official rates through the banks, the naira was on a free fall in the black market. Yet the government had fewer dollars to sell and the bankers were involved in all sorts of sharp practices as they sourced for dollars through official channels which they sold to black market operators with of course some "Mark ups" hovering between the official rate and the black market rates! Gaming the system, a lot of ordinary bankers became instant millionaires overnight through this scheme at the detriment of the country as forex remained high, leading to costly imports and of course subsequent inflation as it regards the retail prices for imported essentials.

The ductions from money sent from abroad to friends and family members in Nigeria is another evil that should be addressed by the Apex bank! It's way too high and many including unnecessary VATs. Bank charges on remitted funds are too high. I think in few countries I have witnessed this type of remittance, Nigeria is the country where the banks deduct so much, you start to wonder whether it's a crime to receive money from abroad! This has made senders to most times look for other alternatives rather than utilizing ordinary wire transfers. And in some countries, especially in Asia there are several alternatives through which such funds can be remitted without that registering in the system. So in order to encourage money senders to send dollars directly to their kits and kins in Nigeria without worry and in bigger quantity, thereby increasing the volume of dollars remitted, the wrechless deductions/taxations should be checked.

Government willingness to allow locals receive money sent to them from abroad in dollars is a good idea. The reason is simple; it will provide more dollars to the black market operators who actually are the real operators in Nigeria since most importers from Nigeria are small scale importers who only need between say five to maybe one hundred thousand dollars for their small scale imports. Most don't even transmit their cash to the exporters in china through banks! They send through unconventional channels or carry that in their pockets and bags across airports while traveling to China, Vietnam, Thailand, Hong Kong, Dubai, Bangladesh etc. Immigration authorities in these countries are aware and in most cases look the other way when Nigerian travellers arrive with such huge raw cash. These strand of importers are either not that schooled in the process of applying for forex from the CBN or lack the impatience as they can buy dollars from a local mallam and send that to say China through illegal operators within one hour! And they import most of the basics used in Nigeria today like clothes, households, shoes, articles etc.

Well said.
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orisa37:
CBN AND COMMERCIAL BANKS "CAT & MOUSE" TRANSACTIONS.

The problem is that most commercial banks are actively defrauding the system in Nigeria. I'm not sure if the socalled privatisation/commercialization of the banks years back has actually worked well in terms of industrializing the country. It looks like the major beneficiaries are the shareholders who get to share huge dividends every end of the year. Apart from that, we are still an agrarian economy, more or less producing nothing, with banks that lend more to importers than to players in the real sector of the economy.