CBN’s ‘Naira 4 Dollar Scheme’ Generates $2.4 billion Diaspora Remittances

The ‘Naira 4 Dollar Scheme’ created by the Central Bank of Nigeria (CBN) in 2021, attracted $2.4 billion in diaspora remittances within eight months, surpassing the figure reported last year.

According to the Director, Trade and Exchange department of the central bank, Ozoemena Nnaji, the total amount gathered between January to August was above the $2.9 billion recorded between March to December 2021.

The central bank had created the ‘Naira 4 Dollar Scheme’ in March 2021, offering N5 for every $1 paid through the official remittance inflow channel. Remittances include salary of Nigerians working for foreign companies, embassies, and persons sending money to their families and friends.

Nnaji revealed this during the 33rd seminar for finance correspondents and business editors at the weekend in Lagos, “We have seen an increase in the Naira 4 Dollar in terms of remittances. For example, in 2021, we were able to record $2.9 billion of cash inflows, so far this year, we have recorded $2.4 billion. So, in half of the year, we have gotten almost what we got in the year 2021.”

She explained that, “We have a component of remittances which include workers’ compensation, anyone that worked in Nigeria, even if you are a Nigerian but are paid in dollars because you work for an embassy or an international organisation, it is counted as a remittance.

“So, there are so many components of remittances. But the component of inflows that came into this country so far, we are at $2.4 billion.”

Nnaji said the central bank is working with Pakistan to learn more about how the scheme can help Nigeria. The CBN is also partnering with the Deposit Money Banks (DMBs), Ministry of Finance, as well as the foreign affairs to improve its remittance policies.

“We have even had meetings with Pakistan, and we observed what they are doing is far broader than what is being implemented here in Nigeria.” Nnaji said, adding, “We are taking baby steps because we know we do not have the resources and the weight because it involves both the ministry of foreign affairs and the ministry of finance.

“We are talking to some agencies to see how this can be replicated here in Nigeria, but that conversation has not gotten to a point of implementation.”