FG’s 9-month amnesty for illegal dollar possession takes off

To give effect to the new Federal Government’s new nine-month window to allow Nigerians deposit undisclosed foreign currencies outside the formal banking system, the Central Bank of Nigeria (CBN) has issued guidelines to all commercial, merchant and non-interest banks on implementation of the scheme. Tagged, “Voluntary Currency Disclosure, Depositing, Repatriation, and Investment Scheme”, also known […]

To give effect to the new Federal Government’s new nine-month window to allow Nigerians deposit undisclosed foreign currencies outside the formal banking system, the Central Bank of Nigeria (CBN) has issued guidelines to all commercial, merchant and non-interest banks on implementation of the scheme.

Tagged, “Voluntary Currency Disclosure, Depositing, Repatriation, and Investment Scheme”, also known as the “Disclosure Scheme,” it provides a nine-month window for Nigerians with foreign currencies to disclose and deposit same in banks.

The federal government gave effect to this under Executive Order No. 15 of 2023.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced the programme last week, which he said was aimed at fostering transparency within Nigeria’s financial sector while driving economic growth through the integration of legitimate foreign currency assets into the formal economy.

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The Disclosure Scheme seeks to encourage Nigerians to voluntarily disclose and formalize their foreign currency holdings, whether domestically or abroad. 

“There will be no penalty; there will be no taxes, and there will be no question,” Edun had told journalists after the 144th meeting of the National Economic Council (NEC) meeting in Abuja.

However, the CBN in a circular with reference number FPR/DIR/PUB/CIR002/013 to banks dated November 5, 2024, issued guidelines on the scheme which took effect yesterday.

The Circular was signed by John S. Onojah, Ag. Director, Financial Policy and Regulation Department and Dr. Adetona S. Adedeji, Ag. Director, Banking Supervision Department.

The circular read: “The Federal Government of Nigeria on October 19, 2023, issued the Presidential Executive Order No. 15 to facilitate voluntary disclosure, deposit, and repatriation of internationally tradable foreign currencies held onshore and offshore by Nigerian citizens, resident within or outside Nigeria.

“Sequel to this, the President signed the Presidential Executive Order No. 15, Modification Notice, 2024, which was gazetted on October 25, 2024.

“To operationalise the Executive Order No. 15, the Honourable Minister of Finance and Coordinating Minister of the Economy had issued the Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024 (Scheme Guidelines) on April 8, 2024.

“In furtherance thereof, the Central Bank of Nigeria hereby issues these Guidelines on the Foreign Currency Disclosure, Deposit, Repatriation and Investment Scheme, 2024, for implementation.

“The Guidelines provide modalities for the participation of Commercial, Merchant, and Non-Interest Banks (CMNIBs) in the Scheme and should be read in conjunction with Presidential Executive Order 15 (as modified), the Scheme Guidelines, and other applicable laws.”

According to the circular sighted by Daily Trust, CMNIBs shall open domiciliary accounts designated for the purpose for intending participants.

Also, the participants shall, among others, open a designated domiciliary account for scheme-related transactions with a CMNIB; may invest the funds in permissible investment instruments and/or permissible investment sectors only…

According to the circular, the CMNIBs, “shall pursuant to an application made by an intending participant under the Scheme, obtain the following: a. the full name of the applicant; b. the applicant’s Bank Verification Number and National Identification Number (for natural persons and directors of incorporated entities) or Tax Identification Number (for legal persons); among others.

“A CMNIB shall permit a participant to, at any time, exchange part or the whole ITFC in the participant’s designated domiciliary account for Naira at the prevailing exchange rate, provided that such conversions are properly disclosed and reported in the CMNIB’s foreign exchange returns,” he said.

A financial analyst, Ayokunle Olubunmi in a chat with Daily Trust said, “It is just a way of trying to see how to boost the reserve and reduce the amount of foreign currencies outside the banking system and also improve the foreign exchange liquidity.”