Nigerian banks to pay N5 ‘subsidy’ for every $1 received from abroad – CBN

  • Says it’s to boost Diaspora remittances

The Central Bank of Nigeria, (CBN) has directed International Money Transfer Operatives (IMTO) to pay a N5 fee for every $1 on diaspora remittances.

The apex bank, in a statement issued on Friday and signed by A.S. Jibrin for the Director, Trade and Exchange Department, said the move will boost and sustain inflows of Diaspora remittances into the country.

The CBN said the “Naira 4 Dollar Scheme” will ensure recipients of diaspora remittances are paid N5 for every 1 US Dollar received as remittance inflow.

This directive, named: “Naira 4 Dollar scheme”, is set to begin on 8th March, and end in May. “In light of this, the CBN shall, through commercial banks, pay to remittance recipients the incentive of N5 for every $1US 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 the same into their domiciliary account”, the statement read.

Recall that in February, the CBN instructed Nigerian commercial banks to open dollar accounts for their customers immediately they receive deposit requests from International Money Transfer Operators, also mandating the IMTOs to pay diaspora remittances to its beneficiaries in dollars.

On Friday, the Naira fell against the U.S. dollar at the Investors & Exporters (I&E) window of the foreign exchange market, closing at N480 to $1. The CBN’s official rate however was still N379 to $1.

The Naira has now been devalued at least three times at the official investors’ and exporters’ window, moving from N307 to N360 in March 2020, and then to N380 in August.

Related news

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.