FG Gives Nigerians 9-month To Deposit Undisclosed Foreign Currencies in Banks

The Federal Government of Nigeria has launched a 9-month window for Voluntary Currency Disclosure, Depositing, Repatriation, and Investment Scheme, also known as the “Disclosure Scheme,” under Executive Order No. 15 of 2023.

The scheme allows Nigerians with foreign currency to disclose and deposit the same in banks.

This was announced by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stating that the program is aimed at fostering transparency within Nigeria’s financial sector while driving economic growth through the integration of legitimate foreign currency assets into the formal economy.

The Disclosure Scheme, outlined by the “Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024,” seeks to encourage Nigerians to voluntarily disclose and formalize their foreign currency holdings, whether domestically or abroad. 

According to the Minister, the initiative is supported by the Central Bank of Nigeria (CBN) and the Ministry of Justice and it’s part of the government’s commitment to bolstering economic stability and anti-money laundering (AML) practices.

Key objectives and benefits of the disclosure scheme

According to Mr. Edun, the Disclosure Scheme is designed to “integrate foreign currency outside the formal financial system into the formal economy” and “strengthen transparency and economic resilience.”

The Minister emphasized the government’s assurance of a “secure, confidential channel” for participants to repatriate and invest their foreign currency, supporting Nigeria’s growth ambitions while adhering to global AML and Countering the Financing of Terrorism (CFT) standards.

Eligibility and Participation Guidelines 

Eligible participants include Nigerians holding legally obtained, internationally tradable foreign currency.

The scheme operates voluntarily, allowing individuals to open or maintain domiciliary accounts with designated Nigerian banks.

Funds disclosed will be managed in a specific sub-account, governed by guidelines issued by the CBN.

Assurances for Participants

The government is extending several incentives to ensure robust participation:

Tax Immunity: Disclosed funds will not be subjected to tax audits or liabilities.

Asset Protection: Disclosed assets will be exempt from expropriation or seizure.

Confidentiality: All disclosed information will be treated with the highest level of confidentiality.

Interest and Repatriation Flexibility: Participants can repatriate their foreign currency at the prevailing exchange rate and will earn tax-free interest on balances in designated accounts.

Participating financial institutions are required to ensure compliance with existing AML/CFT/Counter-Proliferation Financing (CPF) regulations to prevent misuse of the scheme for money laundering or terrorism financing.

Duration and Application Process

The Disclosure Scheme will be open for a period of nine months from its launch date. To participate, eligible individuals need to follow a three-step process:

• Open a domiciliary account with a participating financial institution.

• Complete an application form provided by the CBN.

• Deposit the disclosed foreign currency into a designated sub-account.

Implications for Nigeria’s Economic Outlook

By integrating previously unaccounted-for foreign currency into the formal financial system, the Federal Government hopes to bolster liquidity and strengthen Nigeria’s fiscal position.

The Disclosure Scheme is part of a broader economic vision aimed at fostering an inclusive, transparent financial environment that aligns with international best practices.