The federal government has unveiled a nine-month initiative allowing Nigerians to deposit dollar cash into their bank accounts without facing taxes or penalties, as long as the funds are legitimate and comply with standard banking guidelines.
This groundbreaking program aims to strengthen the formal economy by incorporating foreign currency currently outside Nigeria’s financial system.
Speaking to State House correspondents, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed that the initiative, effective immediately, is expected to enhance the country’s foreign reserves.
“This initiative offers a safe, compliant path for Nigerians holding dollar cash to deposit these funds into their bank accounts, adding to our reserves and potentially easing pressures on the exchange rate,” Edun stated.
The initiative, developed in collaboration between the Ministry of Finance and the Central Bank of Nigeria (CBN), is intended to stabilize Nigeria’s exchange rate by increasing foreign currency availability in the banking sector.
Edun highlighted the opportunity for citizens to secure their foreign currency in regulated bank accounts without fear of punitive actions. Only funds meeting Know Your Customer (KYC) requirements will be accepted, ensuring that deposits comply with existing regulations. According to Edun,
“This is an opportunity for citizens to move cash held outside the banking system into secure, regulated accounts without fear of punitive measures.”
In his briefing, Edun updated the National Economic Council on ongoing economic reforms aimed at tackling the nation’s economic challenges, such as high inflation and slow growth.
These reforms include the removal of subsidies on petroleum and foreign exchange, expected to save between $15 billion and $20 billion annually.
Additionally, he noted that President Tinubu’s administration is working on measures to mitigate the impact of recent policy changes on vulnerable Nigerians, including financial support for about 5 million households and plans to increase the minimum wage.
