Introduces ‘Naira 4 Dollar‘
The Central Bank of Nigeria (CBN) on March 6, released a circular introducing the ‘Naira 4 Dollar Scheme’, which implies that all recipients of diaspora remittances through CBN licensed international Money Transfer Operators shall receive an incentive of N5.00 for every $1 received. According to the circular dated March 5 and signed by A.S. Jibrin on behalf of the Director, Trade and Exchange Department, the policy is to take effect on March 8 and end on May 8, 2021. Recipients of international money transfers are to be paid the incentive whether they decide to collect the dollar amount received, in cash or by transfer to domiciliary accounts.
CBN Governor, Godwin Emefiele speaking on the issue, stated that the initiative is aimed at improving transparency of diaspora remittance inflows, and making international money transfers into Nigeria, more convenient and cost effective for Nigerians in diaspora. He added that the new policy is expected to encourage banks and other financial institutions to develop products and services to attract investments from Nigerians living abroad. Emefiele noted that a decrease in the cost burden of making remittances could boost inflow, as evidenced in some countries where similar policy measures have been applied.