CBN Introduces Naira for Dollar Scheme




CBN Headquarters

By Tony Obiechina, Abuja

The Central Bank of has introduced a five naira incentive for every dollar remitted into the country by in the Diaspora.

This was contained in a circular by the apex bank to all Deposit Money Banks and International Money Transfer Operators.

The circular dated March 5, 2021 with reference number TED/FEM/PUB/EPC/01/003 was signed by the Director, Trade and Exchange Department of the CBN, Dr O.S Nnaji.

Tagged “CBN Naira 4 Dollar Scheme” is part of efforts to sustain and encourage increase in inflows of diaspora remittances into the country.

The circular explained that under the scheme, all recipients of diaspora remittances through the CBN licensed IMTOs shall henceforth be paid N5 for every $1 received as remittance inflow.

The circular reads in part, “In an effort to sustain the encouraging increase in inflows of diaspora remittances into the country, the Central Bank of 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, according to the CBN is to be paid to recipients whether they choose to collect the dollars as cash across the counter in a bank or transfer same into their domiciliary account.

It said that having discussed with banks and IMTOs, the scheme takes effect from Monday March 8 2021 and ends on Saturday May 8 2021.

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