Nigeria has launched an amnesty program starting October 31, designed to bring foreign currency held outside the banking system back into circulation. This initiative aims to revive the struggling naira.
Finance Minister Wale Edun stated on Thursday that individuals will not face tax audits, nor will the government seize their assets, and the program will remain open for nine months.
What the Minister said:
“The scheme offers a secure, confidential channel for people to reintegrate their legitimate foreign currency funds, promoting stability and growth for our nation,”
“There will be no penalty, there will be no taxes, and there will be no questions. They just meet the normal Know Your Customer criteria of banks and they have an opportunity to bring in those funds, make them safe, make them secure, and make them available through normal economic activity,” he said.
Edun noted that this situation presents a unique opportunity, not only for individuals who typically wish to comply with laws and standard business practices but also to mobilize idle dollars into the financial system. This influx can bolster our reserves and positively influence the exchange rate.
As the naira continues its steep decline, residents have increasingly turned to dollar hoarding as a safeguard. The currency, now Africa’s second-worst performer this year after the Ethiopian birr, dropped 2.7% on Thursday to a record low of 1,675.40 per dollar, Bloomberg reported.
The naira’s ongoing challenges are largely attributed to low liquidity in the foreign exchange market. President Bola Tinubu recently introduced reforms allowing the naira to float more freely, ending a system of multiple exchange rates since taking office.
