The Central Bank of Nigeria (CBN) has announced the launch of two new account types targeted at Nigerians in the diaspora: the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA).
These accounts are designed to enhance diaspora participation in the Nigerian economy while offering secure and flexible financial management options.
The introduction of these accounts was detailed in a circular signed by Dr. W. J. Kanya, Acting Director of the Trade and Exchange Department. According to the circular, the NRNOA allows Non-Resident Nigerians (NRNs) to remit their foreign earnings to Nigeria and manage funds in both foreign and local currencies. On the other hand, the NRNIA provides NRNs the opportunity to invest in assets within Nigeria, using either foreign currency (FCY) or local currency (Naira).
Account holders can maintain both foreign currency and Naira accounts, facilitating diverse transactions and investments. The initiative promises significant benefits, including improved access for NRNs to Nigerian economic opportunities and increased diaspora contributions to the nation’s socio-economic development. Additionally, the NRNIA provides a pathway for diaspora participation in Nigeria’s Diaspora Bond and other locally issued debt instruments.
The accounts are set to be available from January 1, 2025, with eligibility subject to Know Your Customer (KYC) requirements, details of which will be released in forthcoming Frequently Asked Questions (FAQs).
The CBN noted that this policy aligns with Memorandum 17 of the CBN Foreign Exchange Manual (2018).
The NRNOA enables NRNs to deposit foreign earnings such as salaries, dividends, and rental income into accounts held in freely convertible currencies specified by the CBN. Funds can also be converted to Naira at prevailing exchange rates through authorized dealers, allowing account holders to meet personal expenses in Nigeria, such as family maintenance, education, and healthcare.
Balances in FCY accounts under the NRNOA can be fully repatriated without restrictions, while interest earned on deposits will be subject to applicable Nigerian tax laws. The accounts also comply with global Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) standards, ensuring secure and transparent transactions.
The NRNIA focuses on investment opportunities, enabling NRNs to invest in both foreign and local currency assets. Account holders can explore financial markets and instruments, including foreign currency bonds, fixed deposits, equities, government securities, and mortgage products.
The NRNIA ensures ease of capital mobility, with investment principal and profits fully repatriable. Tax obligations will apply to investments, except for specific exemptions like government bonds. This account also aligns with international AML/CTF standards, ensuring secure investment transactions.
Eligibility criteria for the NRNIA include a valid or expired Nigerian passport with a foreign passport, or evidence of Nigerian citizenship through parentage. Proof of residency and source of income documentation, such as salary slips or business registration documents, are also required.
The CBN is leveraging digital platforms to simplify onboarding and KYC updates. Banks are encouraged to integrate with the Nigeria Inter-Bank Settlement System (NIBSS) platform, enabling NRNs to acquire Bank Verification Numbers (BVNs) for account opening.
Repatriation of FCY balances in the NRNOA and NRNIA are unrestricted, while Naira balances linked to prior foreign inflows and investment proceeds can also be repatriated. Local transfers within Nigeria are allowed only in Naira, and local deposits are prohibited except for traceable proceeds from approved local investments.
The CBN noted the integration of these accounts with Nigeria’s Diaspora Bond and financial markets. NRNs can use the NRNIA to participate in local and FCY-denominated financial instruments, furthering their investment diversification. The initiative also seeks to reduce reliance on third parties for managing local obligations, providing a secure and efficient alternative for NRNs.
