Nigerians urged to declare foreign currency in new FG scheme

The Federal Government of Nigeria on Thursday launched a new Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme, urging Nigerians with foreign currency holdings outside the formal banking system to declare their assets.

This was disclosed in a statement by the Director, Information and Public Relations Ministry of Finance, Mohammed Manga.

He said the initiative, known as the Disclosure Scheme, is aimed at boosting financial transparency, strengthening regulatory frameworks, and enhancing economic stability through the integration of foreign currency into the formal economy.

The Disclosure Scheme, established under Executive Order No. 15 of 2023 and guided by the Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024, was unveiled by the Finance Minister and Coordinating Minister of the Economy, Wale Edun, in Abuja.

The scheme offers tax incentives, asset protection, and the freedom to repatriate disclosed funds, thereby providing what Mr Edun called a “secure, confidential channel” for Nigerians to regularise their foreign currency holdings.

Transparency

According to the statement, the disclosure scheme is voluntary, targeting Nigerians holding legitimately earned internationally tradable foreign currency.

Participants are required to maintain or open a domiciliary account with designated financial institutions regulated by the Central Bank of Nigeria (CBN).

Funds disclosed, deposited, or repatriated under the scheme will be held in specific subaccounts, allowing for a secure and tax-free process that protects participants from audit or liability related to the disclosed assets.

According to Mr Edun, the scheme represents a bold step towards reinforcing Nigeria’s financial transparency and economic resilience.

“The Disclosure Scheme is a bold initiative aimed at integrating foreign currency outside the formal financial system into the formal economy. It strengthens transparency and economic resilience, setting us on a path to rapid economic growth.

“The scheme offers a secure, confidential channel for people to reintegrate their legitimate foreign currency funds, promoting stability and growth for our nation. Guided by President Tinubu’s leadership and supported by the Central Bank of Nigeria (CBN) and Ministry of Justice, we are building a transparent and inclusive economy, aligned with best practices in anti-money laundering and countering the financing of terrorism,” he said.

Protections for participants

Participants in the scheme are assured confidentiality and the protection of their assets, which will be exempt from any form of expropriation, seizure, or forfeiture.

Additionally, interest earned on the disclosed funds will be tax-free, and participants will have the flexibility to repatriate their foreign currency and any subsequent earnings at the prevailing exchange rate.

The scheme’s guidelines mandate strict adherence to AML/CFT/Counter-Proliferation Financing (CPF) measures, with participating financial institutions required to maintain compliance with regulatory frameworks to prevent misuse of the scheme for illicit activities.

According to the Ministry, the scheme will enhance Nigeria’s ability to track and mitigate illicit cash flows, fostering an environment of greater transparency in line with international standards.

Duration

He said the Scheme will remain open for nine months from its commencement date.

To participate, Nigerians are advised to either maintain or open a domiciliary account with a participating bank, complete the CBN-prescribed application form, and deposit or repatriate their foreign currency into the designated subaccount.