Nigeria’s Apex bank, the Central Bank of Nigeria, recently launched a ‘promo’ to encourage massive remittances by citizens living abroad.
In a circular titled “Introduction Of The CBN’s “Naira 4 Dollar Scheme” for Diaspora Remittances” and signed by its Director for Trade and Exchange department, the Apex bank stated that the scheme was put together in an effort to sustain the encouraging increase in inflows of diaspora remittances into the country…
The statement read;
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. The incentive is to be paid to recipients whether to choose to collect the USD as cash across the counter in a bank or transfer the 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.
The ‘scheme’ which will run from 8th March – 8th May, should help the Apex bank cushion the effect of its dwindling Foreign Reserve thereby strengthening the Naira.
