FG has announced incentives for Nigerians to repatriate foreign funds.
NewsOnline Nigeria reports that the Federal Government of Nigeria has launched the Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme, known as the Disclosure Scheme, under Executive Order No. 15 of 2023 titled “Disclosure, Depositing, Repatriation, and Investment of Eligible Foreign Exchange Assets and Related Matters Order, 2023,” along with the Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024.
This Nigeria news platform understands that the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, unveiled the guidelines for the scheme last night in Abuja.
He described the Disclosure Scheme as a significant initiative to enhance financial transparency, strengthen Nigeria’s economic resilience, and promote economic growth.
Edun stated, “By facilitating the voluntary disclosure, depositing, repatriation, and investment of internationally tradable foreign currency held by Nigerians, both within and outside the country, the scheme aims to integrate these legitimate foreign currency assets into the formal economy.”
Key Objectives of the Disclosure Scheme:
Enhancing Financial Transparency:
Promoting transparency by formalizing legitimate foreign currency assets held by Nigerians outside the Nigerian banking system.
Strengthening AML/CFT Frameworks:
The scheme addresses weaknesses in the existing framework by promoting cashless and legitimate transactions within the formal financial system, thereby reducing the risk of illicit cash transactions.
The Honourable Minister Edun stated, “The Disclosure Scheme is a bold initiative aimed at integrating foreign currency assets currently outside the formal financial system into the formal economy, strengthening transparency and resilience, and setting us on a path to rapid economic growth.”
He emphasized, “The scheme provides a secure, confidential channel for Nigerians 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 the Ministry of Justice, Edun highlighted efforts to build a transparent and inclusive economy in alignment with global standards in anti-money laundering and countering the financing of terrorism (AML/CFT).
Supplementary Information
Eligibility:
The scheme is open to Nigerians holding legitimately earned internationally tradable foreign currency.
Key Features:
Voluntary Participation: Eligible participants may disclose funds voluntarily.
Designated Accounts: Participants must maintain a domiciliary account with participating financial institutions, where disclosed or repatriated funds are held in a designated sub-account for foreign currency under the scheme.
Detailed guidelines for participating financial institutions have been published by the Central Bank of Nigeria (CBN).
Incentives and Assurances for Participants:
Tax Exemptions: Participants will not be subject to any tax audit, investigation, or liability regarding disclosed foreign currency amounts.
Asset Protection: Funds disclosed, deposited, repatriated, and invested under the scheme are safeguarded against expropriation, seizure, or forfeiture.
Unrestricted Repatriation: Participants may freely repatriate their foreign currency and any accrued earnings at the prevailing exchange rate, in line with the scheme’s guidelines.
Confidentiality: Information provided by participants will be treated confidentially per relevant laws.
Participating Financial Institutions:
Deposit money banks regulated by the CBN will process applications, maintain designated accounts, and ensure compliance with the scheme’s guidelines.
AML/CFT Compliance:
Participating financial institutions must fully comply with AML/CFT/Counter-Proliferation Financing (CPF) standards to prevent misuse of the scheme for money laundering or terrorist financing.
Benefits to Participants:
Interest Earnings: Interest earned on balances in the designated domiciliary sub-account will be exempt from taxation.
Scheme Duration:
The Disclosure Scheme will be open for participation for a maximum of nine months from the commencement date.
How to Participate:
Open or maintain a domiciliary account with a participating financial institution. Contact banks for more details.
Complete the application form provided by the CBN through the financial institution, including necessary details and commitments.
Deposit or repatriate foreign currency into the designated domiciliary sub-account.
About the Disclosure Scheme:
The Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme (the Disclosure Scheme) is an initiative by the Federal Government of Nigeria, established under Executive Order No. 15 of 2023 and governed by the 2024 Guidelines. It seeks to formalize legitimate foreign currency held by Nigerians into the formal economy, adhering to AML/CFT/CPF standards.
