The Central Bank of Nigeria (CBN) has introduced a ‘Naira 4 Dollar Scheme’ for diaspora remittances, which offers recipients of diaspora remittances through CBN’s IMTOs to be paid 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).
READ: New CBN guidelines ban MMOs, PSPs, Operators from receiving diaspora remittances
The memo, which was seen by Nairametrics, was dated March 5th, 2021, and signed by the Director, Trade and Exchange Department, A.S Jibrin and 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.
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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.
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Nairametrics understands this initiative is also been supported by commercial banks as we have seen some banks also 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.
Read CBN Naira4Dollar scheme explained.
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As a Freelancer, if I move my money in dollars from my Payoneer account to my domicilary account in Nigeria, will I enjoy this incentive?
I’m wondering too
So what does the story mean in layman’s terms? There’s no point just paroting what CBN says in banking jargon for public consumption. Journalists need to learn to make their so-called breaking news relevant to readers. Try to answer the “so what” question, and add context. What changes after this policy is implemented? Why is the CBN doing it? The story for me raises more questions than answers.
All these “schemes”. Are they serious about proper economic management needed to help develop the Nigerian economy. Technically this is devaluation of the local currency by the extra monetary amount of the local currency, in this case +5 nairas.