The Federal Government of Nigeria launches a 9-month initiative, known as the Voluntary Currency Disclosure, Depositing, Repatriation, and Investment Scheme, or the “Disclosure Scheme,” under Executive Order No. 15 of 2023.
This program allows Nigerians to disclose and deposit foreign currency in banks. Finance Minister Mr. Wale Edun announces that the scheme aims to enhance transparency in Nigeria’s financial sector and promote economic growth by integrating legitimate foreign currency assets into the formal economy.
The Disclosure Scheme, detailed in the “Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024,” encourages Nigerians to voluntarily disclose and formalize their foreign currency holdings, whether held domestically or abroad.
Minister Edun states that the initiative is backed by the Central Bank of Nigeria (CBN) and the Ministry of Justice, as part of the government’s efforts to strengthen economic stability and comply with anti-money laundering (AML) practices.
Objectives and Benefits of the Disclosure Scheme
The Disclosure Scheme is designed to integrate foreign currency into the formal economy and enhance economic resilience. Edun emphasizes that the government ensures a secure, confidential process for participants to repatriate and invest their foreign currency, aligning with global AML and Countering the Financing of Terrorism (CFT) standards.
Eligibility and Participation Guidelines
Nigerians with legally obtained, internationally tradable foreign currency are eligible to participate. The scheme operates on a voluntary basis, allowing individuals to open or maintain domiciliary accounts with designated Nigerian banks. Disclosed funds will be managed in a specific sub-account according to CBN guidelines.
Assurances for Participants
The government provides several incentives to encourage participation:
- Tax Immunity: Disclosed funds will not face tax audits or liabilities.
- Asset Protection: Disclosed assets will be safeguarded against expropriation or seizure.
- Confidentiality: All disclosed information will remain confidential.
- Interest and Repatriation Flexibility: Participants can repatriate foreign currency at current exchange rates and earn tax-free interest on account balances.
Participating banks must comply with existing AML, CFT, and Counter-Proliferation Financing (CPF) regulations to prevent misuse of the scheme.
Duration and Application Process
The Disclosure Scheme remains open for nine months from its launch date. To participate, eligible individuals must:
- Open a domiciliary account with a participating bank.
- Complete a CBN application form.
- Deposit the disclosed foreign currency into a designated sub-account.
Implications for Nigeria’s Economic Outlook
By bringing previously unaccounted foreign currency into the formal financial system, the Federal Government aims to improve liquidity and enhance Nigeria’s fiscal stability. The Disclosure Scheme is part of a broader economic strategy focused on creating an inclusive and transparent financial environment in line with international best practices.
