CBN To Give N5 Per Dollar Incentive For Diaspora Remittances
The Central Bank of Nigeria has introduced a N5 incentive for every dollar remitted into the country by Nigerians in the Diaspora.
The apex bank confirmed the development in a circular sent to all Deposit Money Banks and International Money Transfer Operators
The circular dated March 5,2015 with reference number TED/FEM/PUB/EPC/01/003 was signed by the Director, Trade and Exchange Department of the CBN, Dr O.S Nnaji.
The CBN the initiative tagged “CBN Naira 4 Dollar Scheme” is part of efforts to sustain the encouraging increase in inflows of diaspora remittances into the country.
The apex bank in the circular said under the scheme, all recipients of diaspora remittances through the CBN licensed IMTOs shall henceforth be paid N5 for every $1 received as remittance inflow.
The implications of this, it stated, is that a typical recipient of Diaspora remittances will, at the point of collection, receive not only the dollar sent from abroad but also the additional N5 per dollar received.
The circular reads in part, “In an effort to sustain the encouraging increase in inflows of diaspora remittances into the country, the Central Bank of Nigeria 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.”
This incentive, according to the CBN is to be paid to recipients whether they choose to collect the dollars as cash across the counter in a bank or transfer same into their domiciliary account.
It said that having discussed with banks and IMTOs, the scheme takes effect from Monday March 8 2021 and ends on Saturday May 8 2021.
The World Bank had put the inflow of Diaspora remittance to Nigeria as of the end of 2019 at $23.8bn.