The Central Bank of Nigeria (CBN) has just released a circular to International Money Transfer Operators (IMTO), Deposit Money Banks (DMBs), and other stakeholders, introducing the “Naira 4 Dollar” Scheme where remittances paid into your bank account receives additional credit alert for every $1 USD received!
To further understand this new scheme, the CBN governor, Godwin Emefiele explained the scheme on Fidelity Bank’s Diaspora Webinar this afternoon. The program aired on Zoom, Arise TV, and Youtube Live.
In essence, this means:
- You, the receiver, gets an additional credit alert of N5 per $1USD
- You, the receiver, gets an additional credit alert of N5,000 if you receive $10,000 from abroad
- You, the receiver, gets an additional credit alert of N500,000 if you receive $100,000 from abroad
Who are the beneficiaries of the Naira 4 Dollar Scheme?
The Naira 4 Dollar Scheme will only credit your account only if the funds were received via any of the registered IMTOs currently in operation in Nigeria at the time of this publication. Check a list of the registered IMTOs here.
When does the scheme take effect?
Excerpts from the publication reads that the “incentive runs from Monday 8th March 2021 to Saturday 8th May 2021″.
What does this mean for the current NGN/USD rates in Nigeria?
Nigerians in the diaspora, recently, have wind down on their remittances to Nigeria due to. The CBN has always been proponents of fighting US Dollar demand by removing the need for it, like when the CBN banned the 41 items from importation. Moving from that, the CBN is now moving steps further to affect the inflow of the US DOllar into the Nigerian economic space, this is a good example of trying to “trap it”.
First, CBN stopped IMTOs from keeping US Dollars back in overseas and remitting only Naira to their Nigeria beneficiaries.
Then, the CBN has permitted the IEFX rate to run beyond the official statutory CBN rate. As of Friday 5th March 2021, the IEFX rate was N412.50.
Therefore, the introduction of the “Naira-4-Dollar” scheme will sure boost Nigerians appetite for receipt of US Dollars via the registered IMTOs. This means when receiving your foreign currency through IMTOs, your rate will be N410 + N5.
This is the best time to receive US Dollars from abroad!