The Federal Government has announced a nine-month grace period for Nigerians holding U.S. dollars outside the formal banking system to deposit these funds without facing scrutiny or penalties. Finance Minister and Coordinating Minister of the Economy, Wale Edun, shared the details of this new policy following the National Economic Council (NEC) meeting in Abuja on Thursday.
Minister Edun explained that the initiative, which commenced on October 31, is part of a broader strategy to encourage individuals to bring foreign currency holdings into the banking system. He assured the public that the program would impose no penalties, taxes, or inquiries on those depositing legitimate funds, so long as the deposits meet standard banking “Know Your Customer” (KYC) requirements and do not involve proceeds from criminal or illicit activities.
“There will be no penalty; there will be no taxes, and there will be no questions,” Edun emphasized. He further clarified, “This programme allows people to bring in cash that is outside the banking system. It is unsafe, it is unsecure, and it is outside legal limits. They will have forbearance to bring dollar cash to their bank accounts, provided it is not from criminal proceeds.”
The nine-month window, which runs through July 2025, aims to enhance the security of personal funds and integrate them into the formal economy, making the deposits more readily available for productive use in economic activities.
Additionally, the minister highlighted the government’s ongoing social protection efforts, noting that 25 million Nigerians have benefited from various initiatives. These include digital outreach programs, microenterprise loans, and targeted support for sectors like power, agriculture, manufacturing, health, and compressed natural gas.
The new policy aligns with the Federal Government’s broader goal of strengthening the economy by encouraging transparency in currency holdings, enhancing financial inclusion, and stimulating economic growth. The Central Bank of Nigeria will collaborate with the Ministry of Finance to oversee the program and ensure the secure integration of these funds into the banking sector.
