The Federal Government of Nigeria has launched a nine-month period for voluntary currency release, deposits, repatriation and investment schemes. “Public Plan,” Pursuant to Executive Order No. 15 of 2023.
The scheme allows Nigerians holding foreign currency to release it and deposit it in banks.
This was announced by Mr. Minister of Finance and Coordinating Minister of Economy. This was presented by Wale Edun. The program said it aims to promote economic growth by integrating legitimate foreign currency assets into the formal economy while increasing transparency in Nigeria’s financial sector. .
The public plans are as follows: The “Foreign Currency Disclosure, Deposits, Repatriation and Investment Planning Guidelines, 2024″ encourages Nigerians to voluntarily disclose and formalize their foreign currency holdings, either domestic or abroad.
According to the minister, the initiative is supported by the Central Bank of Nigeria (CBN) and the Ministry of Justice and is part of government efforts to strengthen economic stability and anti-money laundering (AML) practices.
The main objectives and benefits of the disclosure system
According to Mr. Edun, the disclosure plan is designed to “integrate foreign currency from outside the formal financial system into the formal economy” and “strengthen transparency and economic resilience.”
The minister emphasized that the government would ensure “secure and confidential channels” for participants to repatriate and invest foreign currency and support Nigeria’s growth ambitions, while complying with global AML and Financing of Terrorism (CFT) standards. .
Eligibility and Participation Guidelines
Eligible participants include Nigerians holding legally earned and internationally tradable foreign currency.
The scheme operates on a voluntary basis and allows individuals to open or maintain a residential account with a designated Nigerian bank.
The released funds will be managed in specific sub-accounts in accordance with guidelines issued by the CBN.
Warranty to Participants
The government is expanding several incentives to ensure active participation.
Tax exemption: Released funds are not subject to tax audits or liabilities.
Asset Protection: Disclosed assets are exempt from confiscation or seizure.
Confidentiality: All information disclosed will be treated with the highest level of confidentiality.
Interest and repatriation flexibility: Participants can repatriate foreign currency at the local exchange rate and earn tax-free interest on designated account balances.
Participating financial institutions must comply with existing AML/CFT/Counter-Proliferation Financing (CPF) regulations to prevent misuse in schemes for money laundering or terrorist financing.
Period and application process
The open scheme will be open for 9 months from the launch date. To participate, eligible individuals must follow a three-step process.
- Open a regular account at a participating financial institution.
- Fill out the application form provided by CBN.
- Deposit the disclosed foreign currency into the designated subaccount.
Implications for Nigeria’s Economic Outlook
By incorporating previously unaccounted foreign currency into the formal financial system, the federal government hopes to enhance liquidity and strengthen Nigeria’s fiscal position.
The disclosure regime is part of a broader economic vision to create an inclusive and transparent financial environment consistent with international best practice.
