Nigerian central bank has issued a statement stating that it would gift N5 for every $1 remittance sent to Nigeria. The bank said the policy is part of efforts aimed at encouraging increase in inflows of diaspora remittances into the west African country. The policy tagged “CBN Naira 4 Dollar Scheme”, targets senders and recipients of international money transfers. The scheme which takes effect from Monday 8th March, 2021, will end on Saturday 8th of May, 2021.
“Accordingly, all recipients of diaspora remittances through CBN licensed IMTOs shall henceforth be paid N5 for every USD1 received as remittance inflow,” the bank said.
“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 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. In effect, a typical recipient of diaspora remittances will, at the point of collection, receive not only the USD sent from abroad, but also the additional N5 per USD received,” the bank further stated.
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CBN’s latest step comes on the heels of its recent order to Mobile Money Operators and Payment Switch providers to suspend the receiving of remittances or the integrating of their systems with International Money Transfer Operators (IMTOs).
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
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