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CBN launches ‘Naira 4 Dollar Scheme’ to attract diaspora remittances

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Diaspora

The Central Bank of Nigeria (CBN) has introduced a ‘Naira 4 Dollar Scheme’ for diaspora remittances. What this means is that the new scheme will offer recipients of diaspora remittances through CBN’s IMTOs, N5 for every $1 received as remittance inflow.

The scheme takes effect from Monday, March 8, 2021, and ends on Saturday, May 8, 2021.

This was disclosed by CBN in a circular issued to all Deposit Money Banks (DMO) and International Money Transfer Operators (IMTO).

The memo, which was seen by The Street Journal and dated March 5th, 2021, was signed by the Director, Trade and Exchange Department, A.S Jibrin. It read in part;

In an effort to sustain the encouraging increase in inflows of diaspora remittances into the country, the Central Bank of Nigeria (CBN) hereby announces the introduction of the “CBN Naira 4 Dollar Scheme”, an incentive for senders and recipients of international Money Transfers.

Accordingly, all recipients of diaspora remittances through CBN licensed IMTOs shall henceforth be paid N5 for every USD1 received as remittance inflow.

In light of this, the CBN shall, through commercial banks, pay to remittance recipients the incentive of N5 for every USD1 remitted by sender and collected by designated beneficiary. This incentive is to be paid to recipients whether they choose to collect the USD as cash across the counter in a bank or transfer same into their domiciliary account.

In effect, a typical recipient of diaspora remittances will, at the point of collection, receive not only the USD sent from abroad but also the additional N5 per USD received. Please note having discussed with banks and IMTOs, the scheme takes effect from Monday 8 March 2021 and ends on Saturday 08 May 2021.

This scheme is supported by commercial banks as some banks have taken the initiative to advertise it to their customers. It also appears to be an attempt by the CBN to compete with the black market and other unofficial avenues of receiving forex.

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