Nigerians Get 9-Month Grace Period for Dollar Holdings Outside Banking System

The Federal Government has announced a nine-month window for Nigerians who are holding U.S. dollars outside the banking system to bring these funds into formal financial channels without facing legal or financial penalties. This new policy was introduced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a press briefing held after the National Economic Council (NEC) meeting, presided over by Vice President Kashim Shettima at the Presidential Villa, Abuja.

Edun emphasized that the initiative provides a unique opportunity for individuals to safely deposit their dollar holdings in local banks under a limited amnesty, provided the funds are not linked to criminal activities. The program, set to commence on October 31, allows individuals to deposit their dollars into Nigerian bank accounts, bypassing penalties, taxes, or scrutiny beyond standard “Know Your Customer” (KYC) requirements.

The Minister outlined the purpose behind this policy, stressing that, “It allows individuals holding dollars outside the financial system to bring them in, ensuring their funds are safe, secure, and available for economic activities. This move also strengthens our reserves, potentially stabilizing the foreign exchange rate by improving the demand and supply balance.”

During the NEC briefing, Edun also provided updates on Nigeria’s financial accounts. The Excess Crude Account currently holds $473,754.57, the Natural Resources Fund stands at ₦26.1 billion, and the Stabilization Account is at ₦36.3 billion.

Edun further discussed federal economic relief measures, noting that over 25 million Nigerians have benefitted from social protection initiatives. These programs include digital outreach, microenterprise loans, and sector-specific support for industries like agriculture, manufacturing, health, and the expansion of compressed natural gas (CNG) initiatives.

Details and guidelines for the dollar repatriation program will be announced by the Ministry of Finance, followed closely by directives from the Central Bank of Nigeria (CBN). The initiative is designed to foster compliance with financial regulations while boosting Nigeria’s foreign reserves and enhancing currency stability.