President, Association of Bureau de Change Operators of Nigeria, Aminu Gwadabe, has expressed worry over the Central Bank of Nigeria’s Naira4Dollar Scheme.
The incentive, which took effect on Monday, March 8, 2021, is aimed at increasing dollar remittance into the country’s economy.
Gwadabe, in a chat with Financial Street on Monday, pointed out some issues to be addressed, including the sender in terms of cost, speed and value.
“The CBN still needs to look into the concerns of the sender in terms of cost, speed and value,” he stated.
According to him, deepening the remittances space by including the Bureaux de Change will go a long way in ensuring price equilibrium, transparency and global competitiveness.
While commending CBN for the incentive, he said it was one of the steps that would attract inflows into the official foreign exchange window, as a large chunk of the inflows passes through unregulated channels.
“If properly complied to by the operators, it will go a long way in boosting liquidity in the market and subsequently exchange rate stability,” Gwadabe added.
The apex bank had, in a recent circular entitled ‘Introduction of the CBN’s “Naira4 Dollar Scheme” for Diaspora Remittances,’ announced to pay N5 for every $1 received as remittance inflow for the next two months.
“Accordingly, all recipients of diaspora remittances through CBN-licensed IMTOs shall henceforth be paid N5 for every $1 received as remittance inflow.
“Policy on the administration of remittance flows is aimed at increasing the transparency of remittance inflows, reducing rent-seeking activities and providing Nigerians in the diaspora with cheaper and more convenient ways of sending remittances to Nigeria,” CBN stated in the circular.