A recent government amnesty permits anyone to deposit foreign currency into banks without incurring fines or paying taxes as long as the money isn’t the product of criminal activity.
According to a Ministry of Finance statement released on Thursday, the “Disclosure Scheme” program aims to integrate legal foreign currency assets into the formal economy while improving financial sector transparency and bolstering Nigeria’s economic resilience, growth, and development.
“The federal government of Nigeria is pleased to announce the commencement of the foreign currency voluntary disclosure, depositing, repatriation, and investment scheme, known as the disclosure scheme, in pursuance of Executive Order No. 15 of 2023 titled ‘Disclosure, Depositing, Repatriation, and Investment of Eligible Foreign Exchange Assets and Related Matters Order, 2023’ and the ‘Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024’, issued by the Honourable Minister of Finance and Coordinating Minister of the Economy, on October 25th, 2024,” the ministry’s head of communication and public relations, Mohammed Manga, signed the statement.
“Key objectives of the disclosure scheme: enhance financial transparency: Promote transparency in the financial sector by formalising legitimate foreign currency assets held outside the Nigerian banking system by Nigerians within or outside of Nigeria.”
“Bolstering AML and CFT capabilities: The scheme specifically targets weaknesses in the existing framework by promoting cashless and legitimate transactions within the formal financial system. This strengthens regulatory enforcement while also encouraging financial practices that reduce the likelihood of illicit cash transactions.”
Measure to Raise Reserves
According to Wale Edun, minister of finance and coordinating minister of the economy, the program will stabilize currency rates and improve financial security.
Edun encouraged Nigerians with foreign currency they had obtained legally to join the program.
“The disclosure program is a risky undertaking aiming at bringing foreign currency outside the regular financial system into the formal economy. It puts us on a course for swift economic growth by bolstering economic resilience and transparency,” Edun stated.
“The program promotes stability and progress for our country by providing a safe, private way for citizens to reintegrate their legal foreign exchange funds. We are establishing a transparent and inclusive economy, guided by President Tinubu’s leadership and backed by the Central Bank of Nigeria (CBN) and the Ministry of Justice, under best practices in anti-money laundering and counter-terrorism financing.”
