The Central Bank of Nigeria (CBN) has introduced a new amnesty initiative, the “Disclosure Scheme,” allowing banks to trade with foreign currency deposits made under the program. The initiative aims to boost foreign currency inflows into the country and encourage individuals and businesses to disclose previously unreported foreign currency holdings.
Through the “Disclosure Scheme,” individuals and companies are encouraged to deposit their foreign currency holdings with Nigerian banks, with the assurance that these funds can now be openly traded within the banking sector. By authorizing banks to actively utilize these deposits, the CBN hopes to stabilize Nigeria’s foreign exchange market and reduce pressure on the naira, which has been under strain due to limited foreign reserves.
A CBN representative said the program is designed to offer a safe pathway for account holders with foreign currency holdings to integrate their funds into the official financial system without facing scrutiny over the origins of previously undeclared assets. This amnesty aims to foster transparency and enhance liquidity within the foreign exchange market.
Economists view the initiative as a bold step toward addressing Nigeria’s foreign currency challenges, though some caution that it requires careful monitoring to prevent potential risks.