Nigeria’s Federal Government has introduced a nine-month program allowing individuals to deposit dollar bills currently held outside the banking system without penalties, taxes, or scrutiny. The move, announced Thursday by Finance Minister and Coordinating Minister of the Economy Wale Edun, aims to channel unbanked foreign currency into formal financial channels, enhancing security and accountability.
“There will be no penalty; there will be no taxes, and there will be no questions,” Edun assured in a post-National Economic Council (NEC) briefing in Abuja. He further explained that the program, running from October 31, will encourage Nigerians to deposit their dollar cash holdings safely in banks.
Highlighting the rationale behind the initiative, Edun noted that keeping cash outside the banking system poses security and legality risks. “It is unsafe, it is unsecure, and it is outside of legal limits. This program will allow forbearance for people to bring in dollar cash they hold outside the system, provided the funds are not proceeds of crime or illicit activities,” he clarified.
Depositors will only need to fulfill the banks’ standard “Know Your Customer” requirements. The government hopes that the program will bring substantial cash inflows into the banking sector, promoting legal and economic activity.
In addition, Edun revealed that approximately 25 million Nigerians have benefitted from federal social protection programs, which include digital outreach, microenterprise loans, and sector-targeted initiatives in power, agriculture, manufacturing, health, and compressed natural gas.
