N5 For $1 Policy Will Make Remittances Cheaper For Nigerians Abroad — Emefiele

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN),
says the new diaspora policy — “Naira 4 Dollar Scheme” — will make
remittance transfer cheaper for Nigerians in the diaspora.

Emefiele said this during Fidelity Bank’s inaugural diaspora
webinar on Saturday.

The apex bank had announced that all recipients of diaspora
remittances through CBN-licensed international money transfer
operators (IMTOs) will get paid N5 for every $1 received as
remittance inflow.

The scheme, announced on Saturday, will take effect on March 8
and end two months later.

“As we are all aware, remittances from Nigerians living abroad
has had significant benefit on domestic income, social welfare and
economic growth in Nigeria,” Emefiele said during the webinar.

“Nigeria aspires to ensure that remittance flows and diaspora
investments become a significant source of external financing.

“In an effort to reduce the cost burden of remitting funds to
Nigeria by working Nigerians in the diaspora, the Central Bank of
Nigeria has introduced a rebate of N5 for every $1 of fund remitted
to Nigeria, through IMTOs licensed by the Central Bank.

“We believe this new measure will help to make the process of
sending remittance through formal bank channels cheaper and more
convenient for Nigerians in the diaspora.”

Emefiele said the policy is expected to encourage banks and
financial institutions to develop products and investment vehicles
geared at attracting investments from Nigerians in the
diaspora.

He said countries such as Bangladesh and Pakistan have adopted
the use of reimbursement schemes to support remittance inflows.

“In general, the new policy is expected to enlarge the scope and
scale of foreign exchange inflows into the country with a view to
stabilising the exchange rate and supporting accretion to external
reserves,” the CBN governor said.

“More importantly, it will provide an opportunity for Nigerians
living abroad to make investments in their home country.”

Emefiele added that remittance flows to Nigeria are
underreported by several money transfer operators.

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN),
says the new diaspora policy — “Naira 4 Dollar Scheme” — will make
remittance transfer cheaper for Nigerians in the diaspora.

Emefiele said this during Fidelity Bank’s inaugural diaspora
webinar on Saturday.

The apex bank had announced that all recipients of diaspora
remittances through CBN-licensed international money transfer
operators (IMTOs) will get paid N5 for every $1 received as
remittance inflow.

The scheme, announced on Saturday, will take effect on March 8
and end two months later.

“As we are all aware, remittances from Nigerians living abroad
has had significant benefit on domestic income, social welfare and
economic growth in Nigeria,” Emefiele said during the webinar.

“Nigeria aspires to ensure that remittance flows and diaspora
investments become a significant source of external financing.

“In an effort to reduce the cost burden of remitting funds to
Nigeria by working Nigerians in the diaspora, the Central Bank of
Nigeria has introduced a rebate of N5 for every $1 of fund remitted
to Nigeria, through IMTOs licensed by the Central Bank.

“We believe this new measure will help to make the process of
sending remittance through formal bank channels cheaper and more
convenient for Nigerians in the diaspora.”

Emefiele said the policy is expected to encourage banks and
financial institutions to develop products and investment vehicles
geared at attracting investments from Nigerians in the
diaspora.

He said countries such as Bangladesh and Pakistan have adopted
the use of reimbursement schemes to support remittance inflows.

“In general, the new policy is expected to enlarge the scope and
scale of foreign exchange inflows into the country with a view to
stabilising the exchange rate and supporting accretion to external
reserves,” the CBN governor said.

“More importantly, it will provide an opportunity for Nigerians
living abroad to make investments in their home country.”

Emefiele added that remittance flows to Nigeria are
underreported by several money transfer operators.