The Central Bank of Nigeria (CBN) has extended its Naira 4-dollar scheme for diaspora remittances indefinitely.
The initiative by the CBN, which rewards recipients with N5 for every $1 they receive through licensed International Money Transfer Operators and commercial banks, was expected to end on May 8.
But in a statement issued on Wednesday, the apex bank said it has been extended in order to sustain the foreign exchange market liquidity in Nigeria which has been negatively impacted by the coronavirus pandemic and drop in oil revenue.
‘’Further to the CBN circular referenced TED/FEM/PUB/FPC/01/003 dated 05 March 2021 on the above subject matter, which was originally scheduled to end on 08 May 2021, we hereby announce the continuation of the scheme till further notice.
‘’All aspects of the operationalization of the programme remain the same. Please take note and ensure compliance,’’ the CBN statement read.
The Naira 4-dollar scheme was introduced to encourage recipients of dollars to use formal banking channels and help the CBN capture such inflows to boost the liquidity of the forex market and ensure the stability of the Naira, which has been under pressure after the crash of oil prices last year due to the pandemic.