CBN Launches Diaspora-Friendly Accounts to Attract Foreign Investment

The Central Bank of Nigeria (CBN) has unveiled two new financial products aimed at attracting investments from Nigerians living abroad.

The Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA) are designed to provide diaspora Nigerians with secure channels to manage funds and invest in Nigeria’s economy.

In a statement issued at the weekend, the CBN emphasised that these accounts will facilitate easier access for Non-Resident Nigerians (NRNs) to the country’s financial markets, boosting their contribution to Nigeria’s socio-economic development.

“These accounts will provide NRNs with a secure environment to manage their funds directly, reducing their reliance on third parties for local commitments and obligations,” the bank said.

The NRNOA allows NRNs to remit foreign earnings such as salaries, dividends, and rental income to Nigeria and manage funds in both foreign and local currencies. Meanwhile, the NRNIA is designed for those looking to invest in Nigeria’s domestic financial markets, offering the flexibility to invest in assets such as bonds, equities, and government securities, either in foreign or local currency.

The CBN has made clear that as of January 1, 2025, eligible NRNs can open these accounts, provided they meet the required Know Your Customer (KYC) standards, with further details to be shared in an upcoming FAQ release. Interest earned on deposits will be subject to federal taxes, and foreign currency balances can be fully repatriated without restrictions. The funds can also be converted into naira at prevailing exchange rates through authorized dealers.

To maintain the integrity of these accounts as tools for external investment, the CBN has prohibited local deposits. A circular issued on January 10, 2025, states, “Deposits into non-resident accounts must originate from external sources through approved channels. Local deposits are prohibited, except for traceable proceeds from approved local investments linked to prior foreign currency inflows.” The restriction aims to ensure that these accounts serve their primary purpose of attracting diaspora remittances and investments.

Transfers between the NRNOA and NRNIA accounts and other local Nigerian accounts will be permitted only in naira, further reinforcing the focus on foreign currency inflows. This directive aligns with the CBN’s broader strategy to enhance the flow of remittances into the Nigerian economy. Remittances have been a major financial lifeline for Nigeria, averaging $20.5 billion annually over the past decade, according to the World Bank. However, much of these funds have historically been spent on immediate consumption rather than long-term investments.

At an October 2024 event in Houston, Texas, where the CBN, Nigeria Inter-Bank Settlement System (NIBSS), and major financial stakeholders engaged with the Nigerian Diaspora, Deputy Governor of Economic Policy, Muhammad Sani Abdullahi, stressed the importance of shifting the focus of remittances towards sustainable investments. “Our goal is to optimize remittance flows and better integrate these funds into long-term investments that will contribute to national development,” Abdullahi explained.