FG Grants 9-Month Grace Period for Nigerians Holding Dollars Outside Banking System

The Federal Government has introduced a nine-month window for Nigerians holding U.S. dollars outside the banking system to bring their funds into the official financial sector without facing legal penalties or financial sanctions.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the announcement following the National Economic Council (NEC) meeting at the Presidential Villa, Abuja, presided over by Vice President Kashim Shettima. Edun explained that the new policy aims to encourage individuals who hold dollars outside the banking sector to integrate their funds securely and legally into the country’s economy.

Edun highlighted that individuals who choose to comply will not face taxes, penalties, or any questioning about the source of the funds, provided they meet standard banking requirements. “They will be allowed forbearance to bring dollars cash… as long as it is not proceeds of crime or illicit money,” he clarified. “There will be no penalty, there will be no taxes, there will be no questions.”

The Minister elaborated that the new policy, effective from October 31, provides an opportunity to enhance financial security for individuals holding such funds while strengthening the nation’s economic reserves. He emphasized, “It gives us an opportunity to bring those dollars from where they are doing nothing to where they are within the financial system… they add to our reserves, and of course, can help with the exchange rate.”

The nine-month initiative, coordinated by the Ministry of Finance in partnership with the Central Bank of Nigeria (CBN), includes specific guidelines and criteria, which will be released shortly. These guidelines will outline how Nigerians can safely and legally deposit their dollar holdings into their bank accounts by meeting basic ‘Know Your Customer’ requirements.

In addition to the dollar repatriation policy, Edun shared updates on Nigeria’s economic relief measures and funds. He revealed that 25 million Nigerians have benefitted from social protection initiatives like digital outreach, microenterprise loans, and sector-specific support for agriculture, health, and manufacturing. Furthermore, he provided current figures on national accounts, reporting that the Excess Crude Account stands at $473,754.57, the Natural Resources Fund at ₦26.1 billion, and the Stabilization Account at ₦36.3 billion.

The policy aims to bring idle dollars into the Nigerian financial system, making them secure and accessible for economic activities, with the hope that increased reserves will ultimately support a more stable foreign exchange rate.