CBN targets $35bn remittances’ investments in local market – Today


In its bid to further increase foreign portfolio investments, the apex bank has amended the Foreign Exchange Manual to allow an inflow of remittances and foreign exchange earnings in the local debt and money market instruments.

According to data from Global Knowledge Partnership on Migration and Development, remittances into Nigeria totalled $20.8 billion in 2015 and it is also expected to rise to $35 billion by the end of this year.

Tapping into this inflow, the Central Bank of Nigeria at the weekend issued a circular which amends the Memorandum 21 of the Foreign Exchange Manual to allow forex inflows of Nigerian individuals as well as companies, resident and non-resident alike to be invested in the local debt, equities and money market instruments.

According to the circular signed by the Acting Director, Trade and Exchange Department, CBN, W.D Gotring, the move targeted at encouraging portfolio investments, allows Nigerian national or companies who inflowed foreign currencies through authorized dealers, to invest the funds in money market instruments, bonds and equities.

The amended memorandum reads “a resident/non-resident Nigerian national and/or entities and foreign national or entity may invest in Nigeria by way of purchase of money market instruments such as commercial papers, negotiable certificates of deposits, bankers acceptances, Treasury Bills, etc.”