A scheme known as ‘Naira 4 Dollar Scheme’ has been introduced by the Central Bank of Nigeria (CBN) for diaspora remittances.
This would offer recipients of diaspora remittances, through CBN’s IMTOs, N5 for every $1 received as remittance inflow.
This scheme according to reports takes effect from Monday, March 8, 2021, and ends on Saturday, May 8, 2021.
The CBN made this public in a circular issued to all Deposit Money Banks (DMO) and International Money Transfer Operators (IMTO) and 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 that having discussed with banks and IMTOs, the scheme takes effect from Monday 8 March 2021 and ends on Saturday 08 May 2021.”
It has been reported that the project is also been supported by commercial banks as we have seen some also advertise it to their customers.
Experts argue it may be a move by the CBN to compete with the black market and other unofficial avenues of receiving forex.