Central Bank of Nigeria (CBN) has moved to use the estimated $24 billion annual remittance inflow to reduce the nation’s continuous dependence on external borrowing.
Speaking at a Press Conference held in Abuja, the CBN Governor, Godwin Emefiele, clarifies the economic impact of the new policy on Diaspora Remittance in the nation.
According to him, about $24bn cash inflow is estimated from the remittance yearly, which would be channelled towards the development of the nation’s economy.
Emefiele said that:
“Given the estimated annual remittance inflow of close to $24bn, which could help in improving our balance of payment position,reduce our dependence on external borrowing and mitigate the impact of COVID-19 on foreign exchange inflows into the country, the CBN sought to find ways to support improved remittance inflows into the country through official channels.”
Recall that TheNewsBeam had earlier reported that the CBN said the introduction of its new rules on diaspora remittance was due to unfair practices of IMTOs, who engaged in exchange rate arbitrage, thereby cheating beneficiaries of the remittance.
The new rules among other things allow beneficiaries of diaspora remittances to collect the proceeds in foreign currency cash. The CBN had directed banks to commence implementation of the new rules from today, Friday December 4th.
“I therefore seize this opportunity to announce to Nigerians both at home and in the Diaspora, that the policy of recipients receiving their monies from abroad kicks off on December 4, 2020. All the IT systems of these IMTOs (Western Union, Moneygram and Ria services) and the DMBs have been properly configured to begin remittance tomorrow, Friday, December 4, 2020” Emefiele said.