ABCON endorses ‘Naira 4 Dollar Scheme’ as useful for stability of the currency

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Factual Pursuit of Truth for Progress

The recently introduced ‘Naira 4 Dollar Scheme’ has been endorsed by the Association of Bureau De Change Operators of Nigeria (ABCON).

The group said it has a potential of ensuring a competitive diaspora remittance market space that would entrench the stability of the Naira.

The President of ABCON, Alhaji Aminu Gwadabe made this known in an interview with the News Agency of Nigeria (NAN).

Recall that the recent policy was introduced by the CBN, which instructed commercial banks and IMTOs to pay an incentive of N5 for every USD1 remitted by sender and collected by designated beneficiaries.

Gwadabe, while reacting to the recent policy said there was a need to break the monopoly of certain players in the remittances spaces by allowing other relevant stakeholders like BDCs.

He cited examples of how Kenya, Ghana and a host of other African countries deepened their remittance space through a competitive market, and how it led to the stability of their domestic currencies.

Furthermore, Gwadabe cautioned against complacency, noting that more needed to be done for the policy to achieve its anticipated objective of shoring up the value of the Naira through liquidity boost.

Gwadabe said: “There is no doubt the incentive will be somehow attractive to the targeted beneficiaries of the remittances and therefore aimed to address concerns of one of the principal ally in the chain of remittances.

‘’This therefore suggests that it is a window, if well-articulated and includes all the principal allies in the remittances space, will help the Nigerian economy for the availability of FX liquidity,’’ he added.

According to earlier reports, the CBN introduced ‘Naira 4 Dollar Scheme’ in a circular issued by the apex bank dated 5th of March, 2021.
The new policy is expected to create an easier, flexible, and more transparent system of remittance administration that will accelerate investment and growth in Nigeria.

The scheme became effective today and is expected to elapse by 8th of May, 2021.

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