LAGOS, Nigeria (VOICE OF NAIJA)-The Federal Government on Thursday introduced a nine-month program, set to start on October 31, 2024, allowing individuals to deposit dollar bills kept outside the formal banking system without scrutiny.
The initiative is aimed at addressing the surging cost of goods driven by foreign exchange fluctuations impacted by supply and demand.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced the plan following the 144th National Economic Council meeting, chaired by Vice President Kashim Shettima at the State House in Abuja.
“There will be no penalty; there will be no taxes, and there will be no questions,” he told journalists at a briefing after Thursday’s conclave.
Edun stated that through this program, individuals can bring in cash US dollars without incurring penalties, taxes, or scrutiny, as long as the funds are not associated with criminal or illicit activities.
Participants will only need to fulfill the standard Know-Your-Customer requirements established by banks to secure these funds, integrate them into the financial system, and make them available for legitimate economic activities.
He explained, “One element of the cost increase is the foreign exchange rate, which is demand and supply. There will be a programme starting today, October 31, and lasting nine months that will allow people to bring in cash outside the banking system.
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“[Such cash] is 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.”
Edun stated that his ministry will initially release guidelines for the program, followed closely by additional regulations from the Central Bank of Nigeria.
The minister explained that this initiative provides law-abiding individuals with a means to formalize their cash holdings and adds dollar reserves to the financial system, which could contribute to stabilizing the exchange rate.
“This is an opportunity, not just for people who would normally like to comply, to be compliant with the laws and normal business practice, but of course, it allows us to bring those dollars from where they are doing nothing to where they are within the financial system, they add to our reserves, and of course can help with the exchange rate,” he added.
Edun also provided an update on government economic relief efforts, noting that 25 million Nigerians have benefited from federal social protection programs.
These initiatives include digital outreach, microenterprise loans, and targeted support for sectors such as power, agriculture, manufacturing, health, and compressed natural gas.