Receive $1 from abroad, get N5 extra, CBN tells Nigerians

The Central Bank of Nigeria has introduced a new scheme that will see recipients of diaspora remittances get N5 extra for every $1 received from abroad.

The CBN announced on Saturday the ‘CBN Naira 4 Dollar Scheme’, which it described as an incentive for senders and recipients of international money transfers.

In a circular dated Mar. 5, 2021, the apex bank said the introduction of the scheme was in “an effort to sustain the encouraging increase in inflows of diaspora remittances into the country”.

It said all recipients of diaspora remittances through CBN-licensed international money transfer operators would henceforth be paid N5 for every $1 received as remittance inflow.

The circular said, “In light of this, the CBN shall, through commercial banks, pay to remittance recipients the incentive of N5 for every $1 remitted by sender and collected by designated beneficiary.

“This incentive is to be paid to recipients whether they choose to collect the dollar as cash across the counter in a bank or transfer same into their domiciliary account. In effect, a typical recipient of diaspora remittances will, at the point of collection, receive not only the dollar sent from abroad but also the additional N5 per dollar received.”

The scheme takes effect from Mar. 8 2021 and ends on May 8, 2021, according to the central bank.