FG Launches Currency Repatriation Scheme to Bolster Nigeria’s Economy
By Patience Ikpeme
The Federal Government has officially launched a pioneering initiative aimed at enabling Nigerians with foreign currency holdings to repatriate and invest their funds without restrictions, in a move that promises to enhance transparency in the financial sector and boost the country’s economic resilience.
Inaugurated by the Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, the Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme represents a bold step forward in integrating foreign currency assets into the formal economy. This newly launched programme follows the enactment of Executive Order No. 15 of 2023, which aligns with President Bola Ahmed Tinubu’s vision of creating a transparent and inclusive economic landscape.
There will be an initiative starting, October 31, and lasting nine months that will allow people to bring in cash outside the banking system.
“The Disclosure Scheme is a bold initiative aimed at integrating foreign currency outside the formal financial system into the formal economy,” Mr. Edun stated during the launch. He emphasized that the scheme will lead to sustained economic growth and strengthen financial transparency in Nigeria.
Under this scheme, participants can repatriate foreign currency through a secure, tax-exempt channel while also enjoying various incentives. These include the freedom to repatriate at the prevailing exchange rate, asset protection, and assurance that disclosed assets will remain confidential and protected from seizure, expropriation, or forfeiture.
In remarks highlighting the government’s commitment to maintaining the scheme’s integrity, Mr. Edun noted that financial institutions engaged in the programme must comply with Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) guidelines. This is part of an effort to prevent illicit transactions and promote formal financial practices.
The scheme will be operational for a period of nine months, during which eligible Nigerians can voluntarily disclose and repatriate their foreign currency assets into the Nigerian financial system. Participants are encouraged to contact approved banks to open domiciliary accounts for this purpose. The initiative promises confidentiality and protection from tax audits on disclosed foreign currency.
Key features of this initiative include tax exemptions on interest accrued in designated sub-accounts, strict confidentiality on participants’ details, and safeguards against asset expropriation. The Central Bank of Nigeria (CBN) has issued detailed guidelines to financial institutions to facilitate a smooth application process.
As the programme unfolds, the Ministry of Finance anticipates significant foreign currency inflows that will bolster Nigeria’s financial stability and open new avenues for investment. By formalizing foreign assets held by Nigerians domestically and abroad, the government seeks to strengthen the nation’s position within the global financial system.
Mr. Edun’s remarks encapsulated the ambition behind the Disclosure Scheme: to create a transparent, thriving economy and foster greater participation from Nigerians in the formal financial sector, thereby driving economic growth and stability.
At the 144th session of the National Economic Council, which is the premier economic advisory group in the country,
Wale Edun said, the Federal Government unveiled a nine-month initiative set to commence on October 31, which permits individuals to deposit dollar bills that have been kept outside the official banking system without facing any scrutiny. “There will be no penalty; there will be no taxes, and there will be no questions.
The meeting was chaired by Vice President Kashim Shettima at the State House in Abuja. Edun stated that “Such cash if unsafe, insecure and outside legal limits. They will be allowed forbearance to bring dollars cash. Let me emphasise once again: it is to bring dollars that they are holding outside the system to get them in and credit it to their bank accounts, as long as it is not proceeds of crime or illicit money.
“They should just meet the standard Know-Your-Customer criteria of banks and have an opportunity to bring in those funds, making them safe, secure, and available through regular economic activity.
