The Central Bank of Nigeria (CBN) has set several incentive measures to increase the inflows of the US dollar into the local economy. In a document published last March 5, the Bank said it will grant rewards to citizens that receive remittances via the formal system.

According to the document, the “Naira 4 dollars scheme” will start today March 8, and last until May 8. During this period, for every dollar transferred through licensed international money transfer operators and commercial banks, recipients will receive 5 naira. The objective for the authorities is to increase the official inflow of remittances, in the context of hard currency shortages.

“To sustain the encouraging increase in inflows of diaspora remittances into the country, the Central Bank of Nigeria hereby announces the introduction of the “CNB Naira 4 dollar Scheme,” an incentive for senders and recipients of International Money Transfers,” the document said.

In January 2021, the CBN announced the implementation of sanctions against exporters who will not repatriate their export earnings. With the economic crisis that has been hitting Nigeria for several years, aggravated by the covid-19 pandemic, the country has seen its dollar reserves decline following the disruption of oil exports, which account for at least 90% of its export revenues. In addition to plunging the national economy into recession, this situation has led to a depreciation of the naira over the last year.

Remittances from the diaspora to Nigeria are one of the main sources of Nigeria's foreign exchange earnings. In 2017, they represented seven times the amount of official development assistance received by the country.
“In light of this, the CBN shall, through commercial banks, pay remittance recipients the incentive of N5 for every USD1 remitted by the sender and collected by the designated beneficiary. This incentive is to be paid to recipients whether they choose to collect the USD as cash across the counter in a bank or transfer same into their domiciliary account,” CBN explained.

Moutiou Adjibi Nourou