CBN to offer Nigerians N5 on every $1US received from overseas

The Central Bank of Nigeria (CBN) has unveiled a new scheme tagged, ‘Naira 4 Dollar’ to woe more Diaspora remittances.

According to a circular directed to all Deposit Money Banks (DMBs), International Money Transfer Operators (IMTOs) and members of the public, the apex bank said the new scheme was an effort to sustain the encouraging increase in inflows of Diaspora remittances into Nigeria.

The scheme is said to be an incentive for senders and recipients of international money transfers.

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Forecast by PricewaterhouseCoopers, one of the big four accounting firms, had suggested that Nigeria’s remittance flows could reach $34.89bn by 2023 if the policies were right.

Moreso, the forecast revealed that as of 2017, the highest remittance came from the United States, the United Kingdom, Cameroon, Italy, Ghana, Spain, Germany, Benin Republic, Ireland and Canada.

Accordingly, all recipients of Diaspora remittances through the CBN licenced IMOs, shall henceforth be paid N5 for every $1 received as remittance inflow.

“In light of this, the CBN shall, through commercial banks, pay to remittance recipients the incentive of N5 for every $1US remitted by the sender and collected by a designated beneficiary.

“This incentive is to be paid to recipients, whether they choose to collect the dollar as cash across the counter in a banker 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, March 8 and ends on Saturday, May 8, 2021,” the circular stated.