KEY POINTS

• CBN launches NRNOA and NRNIA accounts for Nigerians abroad.
• Accounts are used to remit, invest or to manage finances in local and foreign currencies.
• The objective of Diaspora engagement is to help Nigeria move out of economic underdevelopment.

The Central Bank of Nigeria (CBN) has introduced two specialized bank accounts for Nigerians living abroad: They are the Non Resident Nigerian Ordinary Account (NRNOA) and the Non Resident Nigerian Investment Account (NRNIA).

The initiative, which will began January 1, 2025, is to increase financial inclusion and stage the diaspora development contribution to the Nigerian economic base.

The NRNOA, by allowing Nigerians abroad to remit foreign earnings to Nigeria and to manage funds in both local and foreign currencies, facilitates the conduct of international banking business in Nigeria.

With this, the NRNIA gives the diaspora Nigerians the opportunity to invest in Nigerian assets with foreign currency or the local naira.

Economic opportunities for the Diaspora

Dr. W.J. Kanya, Acting Director, Trade and Exchange Department at CBN said these accounts will further help to open opportunities for Nigerians to invest abroad.

The circular states that the NRNOA is designed to aid Non-Resident Nigerians to remit earnings and to manage funds locally and internationally, while the NRNIA will help Non Resident Nigerians to invest in Nigeria’s economy.

Key benefits of the accounts include:
– The ability to access Nigerian Diaspora Bond and other local investment instruments.
– No need for third parties to manage funds.
– It will also open opportunities for greater contributions to Nigeria’s socio economic growth.

That is, the NRNIA account holders can participate in the investment opportunities of the debt instruments and the infrastructure projects targeted at the Nigerian diaspora.

Stringent security, simplified access

However, the CBN noted that eligible Nigerians abroad must meet Know Your Customer (KYC) requirements in opening the accounts. A forthcoming FAQ document will provide details of these requirements.

This is consistent with the CBN’s Foreign Exchange Manual (2018) to encourage engagement of the diaspora in Nigeria’s financial ecosystem through direct engagement.

Specifically, it would facilitate safe, secure, and flexible financial management, thereby limiting the usage of intermediaries by leveraging the existence of local commitments.