CBN To Boost Diaspora Remittances Inflow Through ‘Naira 4 Dollar Scheme’

In an effort to boost Nigeria’s naira stronger against the US dollar, the Central Bank of Nigeria (CBN) has launched a ‘Naira 4 Dollar Scheme’ for diaspora remittances recipients.

Brandnewsday learned that the CBN made this known in a circular issued to all Deposit Money Banks (DMO) and International Money Transfer Operators (IMTO), noting that CBN’s Naira 4 Dollar Scheme will offer recipients of diaspora remittances through CBN’s IMTOs to be paid N5 for every $1 received to boost the remittance inflow.

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

The memo, which was issued and signed by the Director, Trade and Exchange Department, A.S Jibrin, on the 5th of March 2021, reads, ”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.”

CBN Naira 4 Dollar Scheme

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

As a corollary, the CBN, hence, through commercial banks, pay to remittance recipients the incentive of N5 for every USD1 remitted by the sender and collected by the 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 the same into their domiciliary account.

Interestingly, 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 sent from abroad.

In addition, recipients should take notice that having discussed with banks and IMTOs, the scheme takes effect from Monday 8 March 2021 and ends on Saturday 08 May 2021.

In conclusion, this latest development from the apex bank shows an attempt by the CBN to stand shoulder to shoulder with the black market and other unofficial avenues of receiving foreign exchange.