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Why CBN introduced ‘Naira 4 Dollar Scheme’?

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CBN Governor, Godwin Emefiele
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By Chioma Obinagwam

In an effort to reduce the cost burden of remitting funds to Nigeria by working Nigerians in the diaspora, Nigeria’s apex monetary authority, the Central Bank of Nigeria (CBN) has introduced a rebate of N5 for every $1 of fund remitted to Nigeria, through International Money Transfer Operators (IMTOs) licensed by the bank.

Confiance News gathered from the official Twitter handle of CBN.

“#CBN strives to constantly improve our remittance infrastructure, ease the process of international money transfer and simplify the experience for senders and recipients,” it disclosed.

The Scheme, which will take effect on the 8th of March 2021, will help to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the diaspora.

The new forex policy, the apex bank noted, will create an easier, more flexible, and more transparent, system of remittance administration.

The CBN added that it will greatly enhance the benefits of diaspora remittances in supporting investments and growth in Nigeria.

“Policy on the administration of remittance flows is aimed at increasing the transparency of remittance inflows, reducing rent-seeking activities, and providing Nigerians in the diaspora with cheaper and more convenient ways of sending remittances to Nigeria,” it stated.

“The use of reimbursements of remittance fees has been critical in supporting improved inflow of remittances to countries in South Asia and in improving their balance of payments position following the COVID-19 pandemic,” it continued.

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