Forex crisis: FG gives Nigerians holding illegal dollars 9 months to deposit in banks
Amid the forex crisis rocking the nation, the Federal Government has given individuals in possession of dollar bills illegally a nine-month window to return those funds to the banking system without any consequences.
The policy, which aims to address the rising cost of commodities triggered by the foreign exchange rate and driven by demand and supply dynamics, came into effect on Thursday, October 31, 2024.
Wale Edun, the Finance Minister and Coordinating Minister of the Economy, made this known after the 144th meeting of the National Economic Council (NEC), Nigeria’s highest economic advisory body, chaired by Vice President Kashim Shettima at the State House, Abuja.
Edun explained that such individuals have a nine-month window to comply with the directive without attracting any legal scrutiny or financial penalties.
“There is going to be a release today, details by the federal government through the Ministry of Finance, in conjunction with the Central Bank, 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.
“Therefore, it is unsafe, it is unsecured and it is outside of legal limits. They will allow forbearance to bring dollar cash. Let me again emphasise that it is to bring dollars that they are holding outside the system; 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 told reporters at a briefing after Thursday’s conclave.
Edun explains how the dollar amnesty works
According to the Minister, potential participants will only be required to meet the standard Know-Your-Customer requirements set by banks to secure these funds, integrate them into the financial system, and make them accessible for legitimate economic activities.
“They should just meet the standard Know-Your-Customer criteria of banks and have an opportunity to bring in those funds, making them safe, secure, and available through regular economic activity,” he further explained.
Edun said his ministry will first issue guidelines for the programme, followed promptly by additional guidelines from the Central Bank of Nigeria (CBN).
The minister stressed that the policy offers law-abiding individuals a means to formalise their cash holdings to enable the financial system with additional dollar reserves, which may help stabilise the exchange rate.
“The details of that, the guidelines of that, will be released; first of all, the announcement by the Ministry of Finance and the guidelines will be followed very quickly by the Central Bank.
“This is an opportunity, not just for people who would normally like to comply, to be compliant with the laws and normal business practice, but of course, it allows us to bring those dollars from where they are doing nothing to where they are within the financial system; they add to our reserves, and of course can help with the exchange rate,” he added.
At the same time, Edun gave an update on the government’s economic relief measures, revealing that 25 million Nigerians have benefitted from federal social protection initiatives, including digital outreach, microenterprise loans, and sector-specific support for power, agriculture, manufacturing, health, and compressed natural gas initiatives.
