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  • Updated: March 08, 2021

Nigerian Banks Woo Customers With New CBN ‘Naira-4-Dollar’ Policy

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Adedayo Babatunde
Adedayo Babatunde

Adedayo Babatunde is a seasoned journalist and an enthusiastic organic writer, who is passionate abo...

More From this Author

Nigerian Commercial Banks have started wooing customers ahead of the commencement of the latest ‘Naira-for-Dollar’ incentive policy of the Central Bank of Nigeria (CBN).

The Central Bank of Nigeria (CBN) had on Saturday announced the introduction of the "CBN Naira 4 Dollar Scheme', an incentive for senders and recipients of International Money Transfers in a bid to sustain the encouraging increase in inflows of diaspora remittances into the country.

According to the CBN Governor, Godwin Emefiele, the move was part of CBN’s reforms to boost the inflow of foreign currency into the country, adding that the N5 for every $1 fund remitted to Nigeria initiative would begin on Monday, March 8, 2021. 

Following the announcement of the policy, Deposit Money Banks reached out to their customers on Sunday telling them that N5 would be given for every dollar received by the customers.

Guarantee Trust Bank, for instance, sent out text messages to its customers on Sunday concerning the new development. It read, “Dear Customer, we are giving you N5 for every dollar you receive via money transfer agents. Offer available at all GTBank branches nationwide and valid till 8th of May.”

READ ALSO: CBN Extends Covid-19 Tolerance On Intervention Loans By One Year

Emefiele had explained that the N5 rebate would be given when the remitted fund to Nigeria moved through International Money Transfer Organisations.

He said, “Furthermore, in an effort to reduce the cost burden of remitting funds to Nigeria by working Nigerians in the diaspora, the Central Bank of Nigeria has introduced a rebate of N5 for every $1 of fund remitted to Nigeria, through IMTOs licensed by the central bank.”

Meanwhile, a forecast by PricewaterhouseCoopers, one of the big four accounting firms, had suggested that Nigeria’s remittance flows could reach $34.89bn by 2023 if the CBN’s ‘Naira-for-Dollar’ policy were right.

Although the CBN on Sunday had said the policy would reduce cost and round-tripping, The bank said this in a statement on Sunday titled ‘New policy on remittance inflow to reduce cost, check round-tripping – CBN’.

The acting Director, Corporate Communications Department, CBN, Osita Nwanisobi, explained that there was a maximum amount that could be remitted through an IMTO, adding that no customer could send $100,000 through an IMTO.

Though he admitted that the CBN action did not go far enough in offering total reimbursements, Nwanisobi said it was a step in the right direction in reducing the cost burden for Nigerians remitting funds to Nigeria.

While also noting the existence of initial challenges of network integration, Nwanisobi reiterated Emefiele’s assurance that the CBN would continue to work assiduously to resolve the few challenges that were remaining.

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Adedayo Babatunde
Adedayo Babatunde

Adedayo Babatunde is a seasoned journalist and an enthusiastic organic writer, who is passionate abo...

More From this Author

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