CBN to Pay Recipients of Diaspora Remittances N5 for Every $1 Received

The Central Bank of Nigeria has ensured that to sustain and further boost inflows of diaspora remittances into the country, it will pay recipients of diaspora remittances through CBN licensed IMTOs N5 for every $1 received as remittances inflow.

The apex bank in its circular announced the introduction of “CBN Naira 4 Dollar Scheme”  as an incentive for senders and recipients of international money transfers. The scheme will take effect from Monday, March 8, 2021 and end on Saturday May 8, 2021.

The Circular dated March 5, 2021 and signed by A.S. Jibrin for the Director, Trade and Exchange Department,  read: “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’, and incentive for senders and recipients of International Money Transfers.

 “Accordingly, all recipients of diaspora 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 remittances recipients  the incentive of N5 for every USD1 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. 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 8 May 2021.”

 The letter was addressed to all deposit money banks, international money transfer operators and the general public.