Nigeria launches 9-month dollar recovery program

Nigeria has introduced a nine-month amnesty initiative aimed at recovering U.S. dollars held outside the country’s formal banking sector, a measure expected to stabilize the foreign exchange rate and boost the economy.

According to Finance Minister Wale Edun, the program allows individuals to deposit U.S. dollars held informally without facing penalties or scrutiny. 

Edun emphasised that his ministry will first release a set of guidelines for the program, with the Central Bank of Nigeria providing further instructions. 

This regulatory framework is expected to facilitate smooth participation and ensure secure verification processes within the banking system.

"Individuals will be required to verify their identity with banks before they can deposit their U.S. dollars into the formal financial system," Edun stated, outlining the primary requirements for involvement. 

The initiative grants a window for individuals to legally incorporate their U.S. dollar holdings, potentially easing pressure on the country’s foreign exchange market by increasing the availability of dollars in the formal banking system.

The government views this amnesty program as a strategic approach to address the ongoing forex crisis in Nigeria, which has placed significant strain on the economy. 

By encouraging individuals to transfer their U.S. dollars into regulated banks, authorities aim to improve liquidity and stabilize the naira-dollar exchange rate.

Edun noted that the program could have substantial long-term benefits for the Nigerian economy, aiding in both currency stabilisation and broader economic growth.