The Federal Government of Nigeria has introduced a nine-month Voluntary Currency Disclosure, Depositing, Repatriation, and Investment Scheme, known as the “Disclosure Scheme,” under Executive Order No. 15 of 2023. This initiative allows Nigerians with foreign currency to disclose and deposit their holdings in banks, promoting transparency and economic growth.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced the program, emphasizing its aim to integrate legitimate foreign currency assets into Nigeria’s formal economy. The Disclosure Scheme, detailed in the “Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024,” encourages individuals to voluntarily formalize their foreign currency holdings, whether they are in Nigeria or abroad.
Supported by the Central Bank of Nigeria (CBN) and the Ministry of Justice, the scheme reflects the government’s commitment to economic stability and enhancing anti-money laundering (AML) practices. “The Disclosure Scheme is designed to integrate foreign currency outside the formal financial system into the formal economy,” Edun stated, adding that it will also strengthen transparency and resilience in Nigeria’s economy.
Eligible participants include Nigerians with legally obtained, internationally tradable foreign currency. The scheme operates on a voluntary basis, allowing individuals to open or maintain domiciliary accounts with designated banks. Funds disclosed will be managed in a specific sub-account following CBN guidelines.
To encourage participation, the government offers several incentives:
– Tax Immunity: Disclosed funds will not face tax audits or liabilities.
– Asset Protection: Disclosed assets will be protected from expropriation or seizure.
– Confidentiality: All disclosed information will be kept confidential.
-Interest and Repatriation Flexibility: Participants can repatriate their currency at the prevailing exchange rate and will earn tax-free interest on their account balances.
Participating financial institutions must comply with existing AML/CFT regulations to prevent misuse of the scheme.
The Disclosure Scheme will be available for nine months, and interested individuals can participate by following a simple three-step process:
- Open a domiciliary account with a participating bank.
- Complete an application form from the CBN.
- Deposit the disclosed foreign currency into the designated sub-account.
By integrating previously unaccounted foreign currency into the formal financial system, the Nigerian government aims to bolster liquidity and strengthen the fiscal position of the country. This initiative is part of a broader vision to create an inclusive and transparent financial environment aligned with international best practices.
