Nigeria Is Now Rewarding Citizens for Using Licensed Money Senders, Not Crypto
The "Naira 4 Dollar Scheme" is a bid to funnel remittances through official channels. Meanwhile, peer-to-peer bitcoin remains popular.
Mar 10, 2021 at 7:00 a.m. UTCUpdated Aug 19, 2021 at 7:53 a.m. UTC
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The Central Bank of Nigeria (CBN) is incentivizing citizens to use licensed international money transfer operators (IMTOs) to send and receive money, according to a report by the BBC.
- In a letter dated March 5 and signed by Associate Director A.S. Jibrin, the CBN said it launched the "Naira 4 Dollar Scheme" for remittances in a bid to funnel payments from abroad through official channels.
- The incentive program went into effect on Monday and ends May 8.
- "In effect, a typical recipient of diaspora remittances will, at the point of collection, receive not only the [U.S. dollars] sent from abroad but also the additional [5 naira] per [1] USD received," the letter states.
- In February, the CBN issued a five-page statement clarifying its position on cryptocurrencies, stating they are not a form of legal tender in Nigeria.
- As a means for cross-border payments, cryptocurrencies remain a popular option in the West African nation.
- According to data site UsefulTulips, Nigeria is by far the leading country in Sub-Saharan Africa for peer-to-peer bitcoin trading volume.
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