Economy

CBN Orders Closure of Naira Remittances Ledgers

The Central Bank of Nigeria (CBN) has ordered Deposit Money Banks (DMBs) to close all ‘Naira General Ledgers’ used by the lenders to remit naira to Diaspora remittances beneficiaries.

Godwin Emefiele, CBN Governor made this known in a statement titled ‘Improving Remittance Inflows into Nigeria’. He stated that the Naira General Ledgers are channels whereby remittances have so far been carried out.

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The apex bank has further configured the key IT infrastructure in banks and International Money Transfer Operators (IMTOs). They include Western Union, Moneygram, and Ria services for remittances collection.

The apex bank revealed that based on analyzed data on IMTOs inflows into the country over the years, IMTOs have neglected the improvement of transaction volumes that could enhance means for Nigerians in the Diaspora to remit funds. Instead, concentration has been in the area of arbitrage arrangements on the naira-dollar exchange rate. This highly contributed to the huge decline of flows into the country.

Peace Omenka

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