The Federal Government has introduced a new policy that permits Nigerians holding U.S. dollars outside the formal banking system to deposit these funds in local banks without penalties, taxes, or legal liability. Minister of Finance Wale Edun announced this nine-month grace period, which began on October 31, 2024, allowing Nigerians to safely integrate these cash holdings into the financial system.
Edun explained the purpose behind the policy, stating, “There is going to be a release today … a programme, starting today, the 31st of October, and lasting nine months, that will allow people to bring in cash that is outside the banking system.” This measure seeks to enhance Nigeria’s foreign reserves and support exchange rate stability.
Addressing concerns about the eligibility of funds, Edun clarified that only legally acquired dollars are covered by the policy. “Let me emphasize once again that it is to bring dollars that they are holding outside the system to be able to bring them in and credit them to their bank accounts, as long as it is not proceeds of crime or illicit money. There will be no penalty, there will be no taxes, and there will be no questions,” he stated.
For individuals participating, Edun noted that they must meet the “normal Know Your Customer criteria” of banks, allowing funds to be “safe, secure, and … available through normal economic activity.” Further guidelines on the policy’s implementation are expected soon from the Ministry of Finance and the Central Bank, aiming to facilitate a smooth integration process for participants.
