CBN extends Naira 4 Dollar campaign

Charles Abuede

As part of efforts to sustain the positive inflows of diaspora remittances into the country, the Central Bank of Nigeria (CBN) has announced the continuation of the Naira 4 dollar scheme for diaspora remittances till further notice. The announcement signed by A.S Jibrin, the director of trade and exchange department at the bank revealed.

Recall that earlier in March 2021, the apex bank introduced the scheme as an incentive for senders and recipients of international money transfer where all recipients of remittances from the diaspora through the CBN’s licenced IMTOs and commercial banks shall be paid N5 for $1 received as remittance inflow. However, the scheme was slated by the regulator to be observed for two months between March 8 and May 8 2021, which the bank has further extended till further notice owing to the rate of compliance by commercial banks, international money transfer operators and recipients of diaspora remittances.

According to the earlier published circular by the central bank, the N5 for every $1 incentive is to be paid to recipients irrespective of if they chose to receive the money (dollar) in cash across the counter in a bank or have it transferred into a domiciliary account. Meanwhile, all aspects of the operationalisation of the campaign remain as earlier issued in March.

Meanwhile, Godwin Emefiele, the CBN governor, had in comment reiterated that the scheme was aimed at reducing the cost of remittance inflow, check the activities of round-tripping  and also provide Nigerians in the diaspora with cheaper and more convenient ways of sending remittances to Nigeria. He further revealed that the move was also to increase the transparency of remittance inflows and reducing rent-seeking activities, further citing that in high optimism, the newly introduced scheme will encourage banks and financial institutions to develop products and investments vehicles, geared towards attracting investments from Nigerians in the diaspora.