Five things you should know about CBN’s ‘Naira 4 Dollar scheme’

The Central Bank of Nigeria (CBN), on Friday, introduced the ‘Naira 4 Dollar scheme’ for diaspora remittances.

According to the apex bank, the policy is to sustain increase in inflows of diaspora remittances into the country.

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The scheme is also expected to attract diaspora remittances through the official foreign exchange channels as well as support forex stability in Nigeria.

Below are some things you should know about the scheme.

KICK-OFF DATE

According to A.S Jibrin, CBN’s Director of Trade and Exchange Department, the policy will kick off on Monday, 8th March 2021 and run through till Saturday, 8th May 2021.

N5 BONUS FOR EVERY DOLLAR

For one Dollar transaction coming into Nigeria through the International Money Transfer Organization, CBN through the various commercial banks in the country will give the receiver a N5 bonus. In summary, for every $1 you receive, you get N5 extra. If you receive $100, you get a bonus of N500. This is regardless of any form you want to receive your money in.

HOW TO GET THE BONUS

This incentive is to be paid to recipients whether they choose to collect the United States dollar as cash across the counter in a bank or transfer same into their domiciliary account.

COMMERCIAL BANKS WON’T BEAR THE COST

The cost of the N5 bonus will be shouldered by the CBN and not the various commercial banks in the country.

BONUS FOR RECEIVER AND GIVER

The interesting thing here is that the N5 bonus is an incentive for both parties! In other words, both the sender and recipient will enjoy this N5 bonus. 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.