Our reporter
The Central Bank of Nigeria (CBN) has introduced a comprehensive policy framework aimed at encouraging Nigerian citizens to voluntarily disclose and manage foreign currency holdings both within and outside the country.
The initiative, outlined in the “Guidelines on Implementation of the Foreign Currency Disclosure, Deposit, Repatriation and Investment Scheme to Commercial, Merchant, and Non-Interest Banks (CMNIBs),” became effective on November 6, 2024.
The move follows the Presidential Executive Order No. 15, issued on October 19, 2024, and is designed to foster transparency in the handling of foreign currency transactions while ensuring regulatory compliance. Through the scheme, Nigerian citizens with offshore and onshore foreign currency holdings are encouraged to voluntarily disclose, deposit, and manage these assets, with the possibility of repatriation if desired.
Under the new guidelines, CMNIBs are expected to maintain open channels of communication with the CBN. Banks must provide detailed information about foreign currency deposits within 48 hours upon request from the CBN. This requirement ensures timely access to data, enabling regulatory oversight.
The CBN emphasized that banks will be authorized to share information with government bodies, such as the Federal Ministry of Finance, and other legally relevant parties as needed. To support the transparency goals, participating banks must ensure that all deposits under this scheme are from lawful sources, protecting the scheme from misuse for illegal financial activities.
Another key provision of the guideline allows individuals to convert their foreign currency deposits into naira. This conversion can take place at the prevailing exchange rate in designated domiciliary accounts, provided that the transactions are properly disclosed and reported by the banks involved.
The CBN also assumes a proactive role in data sharing by providing the Ministry of Finance with insights on the scheme’s operations. This sharing of information will occur on an industry-wide level or be specified by individual banks, fostering greater sector-wide accountability.
This voluntary disclosure scheme highlights CBN’s dedication to fortifying Nigeria’s financial systems, enhancing foreign currency management, and promoting economic stability within the country.
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