The Central Bank Of Nigeria’s Naira For Dollar Scheme
By Ibrahim Moshood, Associate, Centurion Law Group
The “Naira 4 Dollar” Policy
With a considerable amount of its population in the diaspora[1], Nigeria is one of the top three African destinations receiving the largest inflow of foreign remittances at over USD 24 Billion in the last quarter of 2020.[2] In an effort to sustain and encourage the inflow of these remittances, the Central Bank of Nigeria has introduced the “Naira 4 Dollar Scheme” on 5 March 2021. This scheme is scheduled to take effect from 8 March 2021 to 8 May 2021.
Foreign remittances are quite important to the Nigerian economy, contributing over 83% to the National budgets between 2018 and 2019. [3] Recall that in November 2020, the CBN had issued a circular to authorized dealers and the public stating principally that, be...