Traffic in Lagos was hellish this weekend. Individuals spent 6 hours on trips that take one hour in normal times. My theory is that IJGBs-- our dear cousins and aunties returning briefly to Nigeria for the holidays-- are overburdening our tiny roadways by throwing their weights about town.
My theory is really unwarranted though and, honestly, we should not be choosing fights with IJGBs understanding the essential function they play in our economy. Remittances from Nigerians in diaspora kept households and businesses liquid throughout the pandemic, and will be more indispensa How do we get our faves to remit more please?In this edition, we highlight the Reserve bank of Nigeria's recent carry on diaspora remittances as a march towards harmonizing/tracking the inflow of dollars into the financial system.
ut initially, please sign up for this newsletter if you are yet to. And find all previous editions here.WHAT'S HAPPENING Make it rain, however in dollarsThree weeks back, the Reserve bank of Nigeria (CBN) released a two-page circular with a surprising update.Basically, when somebody abroad sends dollars to a beneficiary in Nigeria, the cash will no longer be received in naira. Recipients are now to receive the remittance in dollars either in cash nonprescription or in their domiciliary accounts. Each recipient decides what she prefers.The notification was directly for CBN-licensed international cash transfer operators-- Flutterwave, Moneygram, RIA, Western Union, etc. They are to guarantee this new policy works. Worldwide cash transfer operators (IMTO) that keep paying beneficiaries in naira instead of dollars invite the rage of the apex bank and might lose their license to operate.'s current announcements have actually appeared rushed and high-handed-- for instance, controversial penalties for failed direct debits-- many people doubted what to make of this. On December 16, CBN released a directive leaving out mobile money operators from the remittance procedure. MoMo operators are to disable their wallets from receiving remittances from currency converter dollar to naira IMTOs.
The very same document bars payment processors and payment company from integrating with IMTOs as far remittance is concerned.The glue binding these 2 is in the upgrade published on December 2. IMTOs are to make certain they pass the dollars indicated to be remitted to beneficiaries through industrial banks. These banks have likewise been ordered to close all IMTOs naira accounts.
n other words, the CBN is attempting to create a direct remittance architecture that looks something like this: