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CBN Moves To Start Payment Of N5 For Every $1 Sent And Received From Abroad

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In a bid to encourage dollar transaction with commercial banks in Nigeria, the Central Bank of Nigeria has announced it will start paying the senders and beneficiaries of dollars N5 for every dollar transaction done with commercial banks.

This was disclosed by the nation’s apex bank in a press release signed on Friday by the Director of Trade and Exchange Department, A.S Jibrin.

In the statement titled ‘Introduction of the CBN’s Naira 4 Dollar Scheme for Diaspora Remittances’, the CBN stated that it would pay N5 on all one-dollar financial remittances as an enticement for senders and receivers transferring money, though it specified that the promo will last only for two months.

“In an effort to sustain the encouraging increase in inflows of diaspora remittances into the country, the Central Bank of Nigeria (CBN) hereby announces the introduction of the ‘CBN Naira 4 Dollar Scheme’, an incentive for senders and recipients of International Money Transfers.

“Accordingly, all recipients remittances through CBN licensed IMTOs shall henceforth be paid N5 for every USD1 received as remittance inflow.

“In light of this, the CBN shall, through commercial banks, pay to 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 the 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.

“Please note having discussed with banks and IMTOs, the scheme takes effect from Monday, 8 March 2021 and ends on Saturday, 08 May 2021.”