Diaspora Remittances Boost: CBN Gives N5 Incentives For Every Dollar

The Central Bank of Nigeria (CBN) has introduced a N5 rebate for every $1 remitted to Nigeria through licensed International Money Transfer Organisations (IMTOs).

CBN governor, Godwin Emefiele, who disclosed this at an event at the weekend, said the rebate will be paid into the bank accounts of beneficiaries, following receipt of remittance inflows.

“This new measure will help to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the diaspora.”

According to the CBN, the average cost of sending $200 worth remittances to Nigeria from the US is roughly 4.7 per cent.

He said the reimbursement scheme is aimed at increasing the transparency of remittance inflows, reducing rent-seeking activities, and providing Nigerians in the diaspora with cheaper and more convenient ways of sending remittances home.

The Apex bank governor said, the new policy which is to take effect from March 8, 2021 will help to finance a future stream of investment opportunities for Nigerians living abroad.

“this new policy measure will encourage banks and financial institutions to develop products and investments vehicles geared towards attracting investments from Nigerians in the diaspora”, Emefiele said.

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