The Central Bank of Nigeria (CBN) has announced the introduction of a “Naira 4 Dollar Scheme”, an incentive for senders and recipients of international money transfers.
The apex bank in a statement said all recipients of diaspora remittances through CBN licensed IMTOs shall hence forth be paid N5for every $1 received as remittance inflow.
“In light of this, the CBN shall, through commercial banks , pay to remittance recipients the incentive of N5 for every USD1 remitted by sender and collected by designated beneficiary,” the statement read.
“”This incentive is to be paid to recipients is to be paid to recipients whether they choose to collect the USD as cash across the counter in a bank or transfer same into their domiciliary account.”
Essentially a recipient will receive an additional naira value for every transaction that arrives in dollars.
E.g. The recipient of A $1,000 transfer will receive the $1,000 in cash or credit to the receivers domiciliary account plus an additional N5,000.
Analysts have criticised the move saying the incentive does not make up for the flaws of the current scheme.
A poll recently conducted shows that Nigerians still prefer the content evidence of having an agreed naira equivalent credited to their account.
The inconvenience by most remittance beneficiaries of having to wait hours at banks to collect physical dollars in cash, since most don’t have a domiciliary account, plus the additional stress and risk of going to a black market which the CBN governor himself described as illegal in order to change the received funds far outweighs this incentive.