Nigerian Banks woo customers with new CBN ‘naira-4-dollar’ policy

Following the introduction of ‘Naira-for-Dollar’ policy by the Central Bank of Nigeria, Deposit Money Banks on Sunday started wooing customers.

CBN Governor, Godwin Emefiele, had on Saturday announced the introduction of an incentive of N5 for every $1 of fund remitted to Nigeria through International Money Transfer Organisations in the bank’s new forex policy.

He said the move was part of CBN’s reforms to boost the inflow of foreign currency into the country, adding that the N5 for every $1 fund remitted to Nigeria initiative would begin today, Monday.

Based on the policy, Deposit Money Banks reached out to their customers on Sunday telling them that N5 would be given for every dollar received by the customers.

Guarantee Trust Bank, for instance, sent out text messages to its customers on Sunday concerning the new development.

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It said, “Dear Customer, we are giving you N5 for every dollar you receive via money transfer agents. Offer available at all GTBank branches nationwide and valid till 8th of May.”

Emefiele had explained that the N5 rebate would be given when the remitted fund to Nigeria moved through International Money Transfer Organisations.

He said, “Furthermore, in an effort to reduce the cost burden of remitting funds to Nigeria by working Nigerians in the diaspora, the Central Bank of Nigeria has introduced a rebate of N5 for every $1 of fund remitted to Nigeria, through IMTOs licensed by the central bank.”

According to reports, CBN’s ‘Naira-for-Dollar’ policy might increase the country’s foreign remittances to $34.89bn by 2023.

Forecast by PricewaterhouseCoopers, one of the big four accounting firms, had suggested that Nigeria’s remittance flows could reach $34.89bn by 2023 if the policies were right.

In another development, the CBN on Sunday said the policy would reduce cost and round tripping,

The bank said this in a statement on Sunday titled ‘New policy on remittance inflow to reduce cost, check round-tripping – CBN’.

The acting Director, Corporate Communications Department, CBN, Osita Nwanisobi, explained that there was a maximum amount that could be remitted through an IMTO, adding that no customer could send $100,000 through an IMTO.

Though he admitted that the CBN action did not go far enough in offering total reimbursements, Nwanisobi said it was a step in the right direction in reducing the cost burden for Nigerians remitting funds to Nigeria.

While also noting the existence of initial challenges of network integration, Nwanisobi reiterated Emefiele’s assurance that the CBN would continue to work assiduously to resolve the few challenges that were remaining.