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 shouldn't be choosing battles with IJGBs understanding the essential role they play in our economy. Remittances from Nigerians in diaspora kept households and companies liquid during the pandemic, and will be more indispensa How do we get our favorites to remit more please?In this edition, we highlight the Reserve bank of Nigeria's current 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 recipient in Nigeria, the money will no longer be received in naira. Beneficiaries are now to receive the remittance in dollars either in cash over-the-counter or in their domestic accounts. Each beneficiary chooses what she prefers.The notice was straight for CBN-licensed international cash transfer operators-- Flutterwave, Moneygram, RIA, Western Union, current naira to dollar exchange rate etc. They are to guarantee this brand-new policy takes effect. Worldwide money transfer operators (IMTO) that keep paying recipients in naira instead of dollars invite the rage of the peak bank and might lose their license to operate.'s current statements have appeared hurried and high-handed-- for example, questionable punishments for stopped working direct debits-- many people doubted what to make of this. On December 16, CBN released a regulation excluding mobile cash operators from the remittance process. MoMo operators are to disable their wallets from getting remittances from IMTOs.
The same file bars payment processors and payment service providers from incorporating with IMTOs as far remittance is concerned.The glue binding these two remains in the update released on December 2. IMTOs are to make sure they pass the dollars indicated to be remitted to beneficiaries through business 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: