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The Federal Government of Nigeria has launched a nine-month Voluntary Disclosure, Deposit, Repatriation and Investment Scheme, also known as the “Disclosure scheme”, under Executive Order No. 15 of 2023.
The scheme allows Nigerians with foreign currencies to disclose and deposit them in banks.
This was announced by the Honorable Minister of Finance and Coordinating Minister of Economy, Mr. Wale Edun, stating that the program is aimed at promoting transparency within Nigeria’s financial sector while driving economic growth through integration of legitimate foreign currency assets in the formal economy. .
The Disclosure Scheme, set out by the ‘Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024’ seeks to encourage Nigerians to voluntarily disclose and formalize their holdings of foreign currencies, both at home and abroad.
According to the minister, the initiative is supported by the Central Bank of Nigeria (CBN) and the Ministry of Justice and is part of the government’s commitment to strengthen economic stability and Anti-Money Laundering (AML).
Main objectives and benefits of the disclosure system
According to Mr Edun, the Disclosure Scheme aims to “integrate foreign currencies outside the formal financial system into the formal economy” and “strengthen transparency and economic resilience.”
The minister emphasized that government is assured of a “secure, confidential channel” for participants to repatriate and invest their foreign currencies, supporting Nigeria’s growth ambitions while meeting global AML and Countering the Financing of Terrorism (CFT) standards.
Eligibility and Eligibility Guidelines
Eligible participants include Nigerians who own legally acquired, internationally tradable foreign currency.
The scheme operates on a voluntary basis, allowing individuals to open or maintain home accounts with designated Nigerian banks.
The disclosed funds are managed in a specific sub-account, which is governed by the guidelines of the CBN.
Guarantees for participants
The government is expanding several incentives to ensure robust participation:
Tax immunity: Disclosed funds will not be subject to tax audits or liabilities.
Asset protection: Disclosed assets are exempt from expropriation or seizure.
Confidentiality: All information disclosed will be treated with the highest degree of confidentiality.
Interest and repatriation flexibility: Participants can repatriate their foreign currency at the prevailing exchange rate and receive 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 terrorist financing.
Duration and application process
The Disclosure Scheme will be open for a period of nine months from the launch date. To participate, eligible individuals must follow a three-step process:
- Open a direct debit 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 prospects
By integrating previously unknown currencies into the formal financial system, the federal government hopes to enhance liquidity and strengthen Nigeria’s fiscal position.
The Disclosure Scheme is part of a broader economic vision aimed at promoting an inclusive, transparent financial environment that aligns with international best practice.
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