‘Transparency issues, policy changes’ – Nigerians in diaspora express concern over CBN’s new accounts 

When Wale Ameen read about the launch of the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA) by the Central Bank of Nigeria (CBN), he wasn’t too excited about it.

Like many other Nigerians, Wale has had his fair share of inconsistent and unfavourable government policies which have affected both his business and personal finances.

Despite the innovative appearance of these initiatives from the CBN, several concerns have been raised regarding transparency, policy inconsistencies, and the ease of opening and operating these accounts from overseas.

It is not uncommon for government agencies to introduce policies and initiatives that appear promising at first glance, only to reveal underlying challenges that can lead to frustration and eventual abandonment. This situation underscores the prevailing lack of trust and confidence among the general public in the government’s ability to deliver effective solutions.

According to the Office for National Statistics, the number of people who stated Nigeria as their country of birth in the 2021 UK Census was 270,768 – that is 0.5% of the population of England and Wales. The number that was written in Nigeria as their ethnic group was 271,390. Which is 0.5% in England and Wales. The figures provided are for England and Wales. This number has since grown bigger.

The new NRNOA and NRNIA 

Earlier in January, the CBN launched two new financial accounts—the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA)—aimed at increasing liquidity and promoting the participation of Nigerians living abroad in the nation’s economic activities.

The primary goal of these accounts is to strengthen the connection between the diaspora and Nigeria’s domestic economy by providing simplified means for financial transactions and investments.

The NRNOA allows non-resident Nigerians (NRNs) to remit foreign earnings to Nigeria and manage their funds in both foreign and local currencies, offering a secure and convenient environment for financial transactions. Similarly, the NRNIA enables NRNs to invest in various assets within Nigeria, expanding their financial opportunities with the flexibility of using either foreign or local currencies.

According to W. J. Kanya, acting director of the trade and exchange department, the CBN said the benefits of these accounts, stating that they are designed to empower the diaspora community to contribute more effectively to Nigeria’s socio-economic development.

The NRNIA, in particular, offers access to investment instruments such as the Nigeria Diaspora Bond and other debt securities targeted at diaspora investors.

These accounts address several challenges faced by NRNs in managing their finances and participating in domestic investments. By reducing reliance on intermediaries, these accounts minimize risks and inefficiencies, providing direct access to funds and investments.

However, there are many questions begging for answers. For example, how and where can these accounts be opened? Are Nigerians in the diaspora confident in the financial system enough to save their hard-earned money back home?

What impact will this have on the lives of Nigerians living abroad? To address these concerns, Nairametrics spoke with some Nigerians in the diaspora to seek their perspective on the topic.

What Nigerians abroad are saying

Wale Ameen, the founder of Cush and a resident of the United Kingdom, expressed interest in the Non-Resident Nigerian Investment Account but seeks more information before making a final decision.

“The accounts idea from the CBN is a good one for all intents and purposes. On the surface, it’s applaudable, it’s commendable. However, it’s in the specifics that we now need to look at. The big question, what I don’t understand, from my point of view, is how will these accounts operate exactly?” 

Ameen highlighted his particular interest in the investment opportunities provided by the account, such as government bonds and shares, but emphasized the need for clarity on how the accounts will be managed and their relation to existing bank accounts

“Like I said, for all intents and purposes, it’s a good idea. But then the specifics are what now matters.  

Bunmi Jasmine Omeke, a Human Resource expert and co-founder of GetWork Nigeria, continues to maintain business interests in Nigeria despite living in Canada. She expressed interest in opening the new CBN accounts but needs more clarification on the products and the ease of the process.

“Yeah, this is a very good question that you’ve asked. I am very open to saving money in Nigeria. The reason is that Nigeria is still home to me. Yeah, the world is a global village.” 

Omeke emphasized the connection to her country of origin and the opportunity to invest in Nigeria despite global inflation and currency devaluation.

“We don’t necessarily work where we were raised, but at the same time, we are tied to our place of origin. […] If I have an opportunity to invest in another country, and that country is mine, why not? So I am very open to that option of saving my money in Nigeria.” 

She highlighted the practical benefits of the account for managing her investments and business in Nigeria.

“I, for one, have an investment in Nigeria, so there’s always the movement of money in and out of Nigeria. So if that account is created, it’s good for me, it’s good for my household.” 

While many non-resident Nigerians seem interested with the development, the questions that keep popping up is would the interest rate on the NRNIA be as competitive as what is obtainable in the UK and US?

Temitope Niyi, who is passionate about marketing, sales, product, and design, expressed concerns about transparency, interest rates, and the instability of government policies. He said:

“Personally, I would make investments in, for example, the UK, where I am, because my interest is a lot more.  

“My fear about Nigeria is the instability of government policies because today now, for example, I have a domiciliary account in Nigeria, I have money in that account but I can’t even move that money out through my internet banking because the bank decides there’s a new rule that I can’t withdraw my money, which is frustrating.” 

Niyi highlighted the lack of transparency and frequent policy changes in Nigeria compared to the UK.

“So there’s a lot of somersaulting in the Nigerian financial system. Whereas here (in the UK), there is a lot of transparency, you are notified before anything happens. Like next month, because of some rules in the UK, they’ve been sending me notifications since November letting me know that things are about to change.” 

He emphasized the impact of these issues on his confidence in investing in Nigeria. 

“Whereas in Nigeria, you call and like ‘Why can’t I withdraw my money?’ and they say ‘oh, sorry. It’s a new policy, I’ve never heard about it. So because Nigerian policies are somersaulting and no transparency, it doesn’t even give me the confidence to say I’m going to put my money in Nigeria as an investment.”  

A tier-one bank source who does not want his name mentioned because he’s not authorised to speak told Nairametrics that banks are yet to receive the full guidelines from the CBN. “Maybe by March banks should have started”, he added.

Another source in another bank promised to get back to Nairametrics but did not at the time the story was published.

However, the CBN has said it will come out with further clarification as Nigerians in the diaspora are hoping the information will meet their curiosity.