FG Offers 9-Month Grace Period for Nigerians to Deposit Dollars in Banks

In a move to bolster the country’s financial system, Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has announced a new policy allowing citizens to deposit dollars held outside the formal banking sector. This initiative provides a nine-month grace period for individuals to comply without facing legal repercussions or financial penalties.

The announcement was made following a National Economic Council meeting led by Vice President Kashim Shettima on Thursday, during which updates on Nigeria’s financial accounts were also shared. As of now, the Excess Crude Account holds $473,754.57, the Natural Resources Fund amounts to N26,105,837,627.67, and the Stabilisation Account stands at N36,299,452,763.62.

Edun highlighted that the rising costs in the economy are partly attributed to fluctuations in the foreign exchange rate. He stated, “Today, we are launching a program that will run for nine months, enabling individuals to bring cash outside the banking system into a secure environment.”

He emphasized that this initiative is designed to facilitate the safe transfer of dollars, provided that the funds are not derived from illegal activities. “There will be no penalties, no taxes, and no intrusive questioning,” he assured, noting that individuals must simply meet the standard Know Your Customer (KYC) requirements of banks.

This program aims not only to encourage compliance with financial regulations but also to enhance the country’s foreign reserves, which can ultimately aid in stabilizing the exchange rate. The Ministry of Finance will soon release detailed guidelines for the initiative, which will be supported by the Central Bank of Nigeria.

In addition to this policy, Edun reported that 25 million Nigerians have benefited from various federal social protection initiatives, including digital outreach programs, microenterprise loans, and sector-specific support in power, agriculture, manufacturing, health, and compressed natural gas initiatives.