Naira 4 Dollar scheme aimed at reducing rent-seeking activities, enhance flexible, transparent diaspora remittances – Emefiele

Godwin Emefiele

Naira 4 Dollar scheme aimed at reducing rent-seeking activities, enhance flexible, transparent diaspora remittances – Emefiele

Governor of the  Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, says the new, “Naira 4 Dollar Scheme’’ for diaspora remittances will enhance a transparent and more flexible remittance administration.

Emefiele said this in a series of tweets in CBN’s verified twitter handle.

He stated that the scheme will greatly enhance the benefits of diaspora remittances in supporting investments and economic growth in Nigeria.

He said that the scheme was consistent with the global trend, adding that the apex bank aspired to ensure that remittance flows and diaspora investments became a significant source of external financing.

“CBN strives to constantly improve our remittance infrastructure, ease the process of international money transfer and simplify the experience for senders and recipients.

“We believe this new measure will help to make the process of sending remittance through formal banking channels cheaper and more convenient for Nigerians in the diaspora.

“The new policy will create an easier, more flexible, and more transparent, system of remittance administration, it will greatly enhance the benefits of diaspora remittances in supporting investments and growth in Nigeria,’’ he stated.

He said that the policy was aimed at reducing rent-seeking activities, and providing Nigerians in the diaspora with cheaper and more convenient ways of sending remittances to Nigeria.

He added that similar schemes had helped boost economies of some countries across the world.

“The use of reimbursements of remittance fees has been critical in supporting improved inflow of remittances to countries in South Asia and in improving their balance of payments position following the COVID-19 pandemic.

“PwC forecasts suggest that Nigeria’s remittance flows could reach US$34.89 billion by 2023. But this can only be accomplished if remittance infrastructure improves and if the right policies are put in place,’’ he said.

The CBN had, over the weekend, announced the “Naira 4 Dollar Scheme’’ to commence on Monday and run till May, 8.

The scheme would allow all recipients of diaspora remittances to be paid N5 for every one dollar received.

Meanwhile, some stakeholders have described the policy as desperation on the part of CBN to earn foreign exchange for the country.