Central Bank of Nigeria introduces non-resident Nigerian accounts to boost diaspora investments

The Central Bank of Nigeria (CBN) has announced the launch of two specialised non-resident Nigerian accounts to boost diaspora investments- Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA).

Penpushing reports that Acting Director of Trade and Exchange Department, W.J Kanya made this known in a circular by the bank, which explained that effective from effective from January 1, 2025, eligible Non-Resident Nigerians (NRNs) can open these accounts through authorised banks.

The bank circular, explained that the initiative is aimed at fostering greater economic participation by Nigerians in the diaspora while enabling them to manage funds and invest in Nigeria with ease, stressing that the Non-Resident Nigerian Ordinary Account (NRNOA) allows Non-Resident Nigerians (NRNs) to remit foreign earnings to Nigeria and manage their finances in both foreign and local currencies.

Penpushing further reports that the statement stated that on the other hand, the Non-Resident Nigerian Investment Account (NRNIA) is designed to facilitate investments in Nigerian assets using either foreign currency or naira.

‘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 read.

‘Account holders may maintain both a foreign currency (FCY) account and/or a local currency (Naira) account to facilitate transactions and participate in diverse investment opportunities’, the circular explained.

Penpushing also reports that the circular said through the Non-Resident Nigerian Investment Account (NRNIA), diaspora Nigerians can invest in a range of financial instruments, including government securities, equities, and Nigeria’s diaspora bond, with a focus on enhancing their contribution to the nation’s socio-economic development.

The Central Bank of Nigeria (CBN) in the circular explained that accounts will provide a direct, secure channel for managing funds, reducing reliance on intermediaries, and promoting transparency in financial transactions.

Penpushing reports that the circular stated that these accounts offer significant benefits, including improved access to the Nigerian economy, increased diaspora contributions, and streamlined processes for fulfilling local commitments such as education and healthcare expenses.

The Non-Resident Nigerian Ordinary Account (NRNOA) facilitates the remittance of foreign income such as salaries, allowances, dividends, and rental earnings, while account holders can fully repatriate their FCY balances without restrictions and convert funds into naira at prevailing exchange rates.

Penpushing further report that in similar vein, the Non-Resident Nigerian Investment Account (NRNIA) supports investments in both local and foreign currency-denominated assets, with profits and principal also repatriable without limitation.

The circular said to ensure compliance with global Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) standards, the accounts are subject to strict regulatory oversight, and in addition tax policies will apply to interest and investment earnings, except for exemptions such as government bonds.

Penpushing also reports that the apex bank said account holders may maintain balances in freely convertible foreign currencies as specified by it, and additionally, they have the option to maintain a Naira account for investments in local currency assets.

The circular stated that Non-Resident Nigerian Investment Account (NRNIA) provides flexibility for investments in both local and foreign currency assets, including equities, government securities, and mortgage products.

Penpushing reports that it stressed that balances are held in freely convertible foreign currencies as specified by the Central Bank of Nigeria (CBN), with the option of a Naira account for local investments.

The circular said account holders benefit from full repatriation of funds, negotiable interest rates, and compliance with global AML/CTF standards to ensure secure transactions, and that eligibility requires proof of Nigerian citizenship or residency, along with documentation such as utility bills, tax receipts, or bank statements.

Penpushing reports that it said this attracts digital platforms streamline onboarding and KYC updates, enabling efficient account management and integration with the Bank Verification Number (BVN) system.

The circular said funds in Non-Resident Nigerian Ordinary Account (NRNOA) and Non-Resident Nigerian Investment Account (NRNIA) accounts can be freely repatriated, with Naira balances subject to proof of conversion from foreign inflows.

Penpushing further reports that is stated that local deposits are restricted to traceable proceeds linked to foreign currency transactions, stressing that cash withdrawals must follow local regulations, and transfers to local accounts are allowed only in Naira.

The circular added that Non-Resident Nigerians(NRNs) can invest in both local and foreign currency instruments, though Nigerian market investments are in Naira, explaining that investments are subject to taxes, with exemptions for government bonds, while inquiries should be directed to the Central Bank of Nigeria’s Trade and Exchange Department.

Penpushing also reports that the Central Bank of Nigeria (CBN) stated that to open these accounts, Non-Resident Nigerians (NRNs) must present valid documentation, including proof of Nigerian citizenship and residency.

The circular said the Central Bank of Nigeria (CBN) has equally introduced digital platforms to streamline onboarding and Know-Your-Customer (KYC) updates, ensuring convenience for diaspora Nigerians, and that this policy operates in tandem with the apex bank Foreign Exchange Manual (2018), providing a structured framework for facilitating diaspora investments and financial management.

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