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Nigerians in Diaspora Voice Concerns Over CBN’s New Financial Accounts
When Wale Ameen came across the Central Bank of Nigeria’s (CBN) introduction of the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA), he was not particularly enthusiastic.
Like many other Nigerians, he has experienced the effects of inconsistent government policies, which have impacted both his business and personal finances.
Although these new CBN initiatives appear promising, questions surrounding transparency, policy stability, and the ease of opening and managing these accounts from abroad have sparked concerns.
Government agencies often roll out policies that seem beneficial at first but later reveal operational challenges that lead to frustration and, in many cases, abandonment. This reality has contributed to a general lack of trust in the government’s ability to implement sustainable financial solutions.
Overview of the NRNOA and NRNIA
Earlier this year, the CBN launched two financial products—the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA)—aimed at improving liquidity and encouraging diaspora participation in Nigeria’s economy.
These accounts are intended to strengthen financial ties between Nigerians abroad and the domestic economy by providing a streamlined means for transactions and investments.
The NRNOA enables non-resident Nigerians (NRNs) to send foreign earnings home and manage funds in both local and foreign currencies, offering a secure and efficient banking option. Meanwhile, the NRNIA facilitates investments in Nigeria, granting NRNs the flexibility to engage in financial activities using either currency.
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W. J. Kanya, acting director of the trade and exchange department at the CBN, stated that these accounts were developed to empower the diaspora community, allowing them to contribute more significantly to Nigeria’s economic growth.
The NRNIA, in particular, provides access to investment instruments such as the Nigeria Diaspora Bond and other securities targeted at overseas investors.
By minimizing reliance on intermediaries, these accounts reduce financial risks and inefficiencies, ensuring direct access to funds and investment opportunities.
However, key questions remain: How and where can these accounts be opened? Do Nigerians in the diaspora have enough confidence in the financial system to deposit their hard-earned money in Nigerian banks?
Reactions from Nigerians Abroad
Wale Ameen, founder of Cush and a resident of the United Kingdom, expressed interest in the Non-Resident Nigerian Investment Account but emphasized the need for further details before making any decisions.
“The accounts initiative from the CBN is a good one in principle. On the surface, it’s commendable. However, the crucial issue is the specifics. The main question I have is: how will these accounts function in practice?”
Ameen noted that while the investment options, such as government bonds and shares, seem appealing, clarity is needed regarding the accounts’ operations and their connection to existing banking systems.
“As I mentioned, the idea itself is positive, but the details are what truly matter.”
Bunmi Jasmine Omeke, a human resource professional and co-founder of GetWork Nigeria, currently living in Canada, expressed openness to the new CBN accounts but stressed the importance of clarity on the process and product details.
“This is an important discussion. I’m open to the idea of saving money in Nigeria because, at the end of the day, Nigeria is still home to me. The world is now a global village.”
Omeke highlighted her emotional and financial connection to Nigeria, despite the effects of inflation and currency fluctuations.
“Even though we may not necessarily work where we were raised, we still maintain ties to our homeland. If I have the chance to invest in another country, and that country happens to be mine, why not? I would consider that option.”
She also pointed out the practical advantages of such an account, particularly in managing her investments and business interests in Nigeria.
“I personally have investments in Nigeria, so I frequently move money in and out of the country. If this account becomes available, it would be beneficial for me and my family.”
Despite the apparent interest, one pressing concern remains: will the interest rates offered on the NRNIA be competitive compared to those available in financial markets like the UK and the US?
Temitope Niyi, a professional with expertise in marketing, sales, product development, and design, raised concerns about transparency, interest rates, and the unpredictability of government policies.
“I would rather invest in the UK, where I currently live, because the returns are higher.
“What worries me about Nigeria is the instability of government policies. For instance, I have a domiciliary account in Nigeria with funds in it, but I can’t transfer money out via online banking because the bank suddenly imposed new restrictions without notice. It’s frustrating.”
Niyi emphasized the contrast between Nigeria’s policy environment and that of the UK, where financial regulations are clearer and more predictable.
“In Nigeria, policies frequently change without prior notification. Meanwhile, in the UK, I’ve been receiving updates since November about regulatory changes set to take effect next month. That level of transparency builds trust.”
He highlighted how these uncertainties make it difficult for him to commit funds to investments in Nigeria.
“In Nigeria, if you ask, ‘Why can’t I withdraw my money?’ the response is often, ‘Sorry, there’s a new policy.’ No prior notice, no explanation. Because of this unpredictability and lack of transparency, I don’t feel confident about investing my money there.”
A source from a leading commercial bank, who requested anonymity due to lack of authorization to speak, disclosed that financial institutions are yet to receive full implementation guidelines from the CBN. “By March, banks might be in a position to launch these accounts,” the source added.
Another banking official indicated that more information would be provided soon but had not responded with further details at the time of reporting.
The CBN has assured that additional clarifications will be released in the coming weeks as Nigerians in the diaspora await answers to their concerns.
