The Federal Government of Nigeria has unveiled a nine-month initiative to encourage citizens to disclose and deposit their foreign currency holdings in Nigerian banks under the new Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme. This program, formally called the “Disclosure Scheme,” was introduced under Executive Order No. 15 of 2023 and officially launched by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The program seeks to enhance the nation’s financial system by incorporating international fund circulation beyond local banks and adhering to global standards for financial transparency.
Unveiled in Abuja, the program offers a voluntary guideline for citizens holding legally obtained, globally tradable international assets. The main goal of the Disclosure Initiative is to enhance Economic Stability and strengthen regulatory systems by motivating individuals to integrate external assets into the official economy. Mohammed Manga, the Information and Public Relations Director at the Ministry of Finance, emphasised this initiative to enhance clarity in financial assets and strengthen regulatory effectiveness. Supported by The Central Bank of Nigeria (CBN) and the Ministry of Justice, it will create safe channels for individuals to report, deposit, and return international funds holdings.
Nigerians with eligible funds urged to start or keep a domiciliary account.
Furthermore, the scheme, compliant with the guidelines outlined in the 2024 Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme, offers a secure and private method for individuals to channel non-local funds into the formal banking system. By implementing this program, the government aims to reduce the dangers linked to unregistered international assets while strengthening the country’s financial system. The initiative’s stakeholders can expect complete confidentiality and protection against audits and financial obligations concerning their reported assets. They will not be at risk of having their stated properties taken, seized, or confiscated to enhance openness and improve the economic outlook.
Individuals with qualifying capital are encouraged to initiate or keep a domiciliary account at any financial institution under CBN supervision to facilitate involvement. Upon joining the program, participants will deposit their external funds holdings into a specific sub-account, which includes protections for safe and tax-exempt handling of reported assets. According to Mr. Edun, the initiative aims to establish a clear and organised method for reintroducing international currency, benefiting contributors and the country’s economy. Additionally, this program provides considerable flexibility, permitting participants to transfer their funds back at the current exchange rate, with any interest generated from these deposits remaining tax-free.
Comprehensive anti-money laundering compliance will be implemented.
However, to establish a resilient framework that meets global standards, the Disclosure Scheme integrates strict compliance protocols for Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF). Financial institutions involved in the initiative must comply with these regulatory guidelines to reduce the risk of exploiting the scheme for illicit uses. The CBN and the involved banks will actively oversee these sub-accounts, strengthening the nation’s initiatives to reduce illegal financial transactions and promote a cleaner economic environment.
To support the government’s objectives, the Ministry of Justice will collaborate with financial institutions to establish regulations harmonising transparency and protecting assets. The scheme is open for nine months, giving participants a limited time to disclose and formalise their non-local fund holdings. The process for participation is straightforward. Eligible citizens must establish or maintain a domiciliary account with a registered bank, complete an application form provided by the CBN, and deposit their foreign currency into a designated sub-account.
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Lastly, the organised application procedure enhances the participant experience while upholding strict Security and privacy standards. Mr. Edun emphasised that the Disclosure Scheme significantly strengthens local economic stability by integrating previously unrecorded foreign currency into the official financial framework. This initiative improves liquidity and aligns with the government’s objective of promoting an inclusive financial environment. By encouraging legitimate currency disclosures, the government reaffirms its dedication to transparency, a crucial element for sustainable growth and economic stability.