The Central Bank of Nigeria (CBN) has introduced the ‘CBN Naira 4 Dollar Scheme’ in its bid to sustain the increase in inflows of diaspora remittances into the country.
CBN announced this in a circular to all deposit money banks, International Money Transfer Operators (IMTOs), and the public in general.
In the document dated March 5, 2021, and signed by its Director of Trade and Exchange Department, A.S. Jibrin, the apex bank explained that the scheme was an incentive for senders and recipients of international money transfers.
Accordingly, it noted that all recipients of diaspora remittances through IMTOs licensed by the nation’s financial regulator would henceforth be paid N5 for every 1$ received as remittance inflow.
The CBN added that the incentive of N5 for every $1 remitted by the sender and collected by the designated beneficiary would be paid through the commercial banks in Nigeria.
According to it, the incentive is to be paid to recipients whether they choose to collect the USD as cash across the counter in a bank or transfer the same into their domiciliary account.
The apex bank stated that it had discussed the new development with banks and IMTOs, saying the scheme would take effect from March 8 and end on May 8, 2021.