The central bank of Nigeria introduces Naira 4 Dollar Scheme for Diaspora remittances

As discussed with banks and IMTOs, this scheme takes effect on Monday, 8th of March, 2021 and ends on Saturday, the 8th of March 2021. Business analysts have called out this move by the CBN as an attempt to contend with the black market and other unofficial mediums of receiving forex.  

The Central Bank of Nigeria (CBN) announced the introduction of the "CBN Naira 4Dollar Scheme", an incentive for senders and recipients of International Money Transfers. This move was set in motion to strengthen the positive boost in includes of diaspora remittances into Nigeria.  

What this implies is that all recipients of diaspora remittances made through the CBN licensed IMTOs will be paid N5 for every USD1 received. This information was disclosed by CBN in a circular issued to all Deposit Money Banks (DMB) and International Money Transfer Operators (IMTOs). The CBN will be funding the cost for this extra credit.

The incentive will be paid to recipients whether they choose cash across the counter in a bank or inform of transfers to their domiciliary account. This means that the recipients will not only be receiving the USD sent to their accounts but an additional N5 per every USD received.