Forex Crisis: FG woos Nigerians with 9 Months grace to open dollar accounts

The Federal government on Thursday announced a new policy that will allow Nigerians who currently hold dollars outside the formal banking system to bring those funds into the financial system.

Wale Edun, Minister of Finance and Coordinating Minister of the Economy, said such individuals have a nine-month grace period to comply with the directive without attracting legal liability or financial penalties.

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Edun stated this while briefing State House Journalists, after the 145th National Economic Council meeting,chaired by Vice President Kashim Shettima on Thursda

Edun also provides update on the Excess Crude Account currently standing at $473,754.57, the Natural Resources Fund at ₦26,105,837,627.67, and the Stabilization Account at ₦36,299,452,763.62.

Edun equally gave update on government economic relief measures, saying 25 million Nigerians have benefitted from federal social protection initiatives, including digital outreach, microenterprise loans, and sector-specific support for power, agriculture, manufacturing, health, and compressed natural gas (CNG) initiatives.

He disclosed that One element of the cost increase is the foreign exchange based on demand and supply.

” There is going to be a release today, details by the federal government through the Ministry of Finance, in conjunction with the Central Bank, a programme, starting today, 31st of October, and lasting nine months, that will allow people to bring in cash that is outside the banking system.

“So therefore it is unsafe, it is unsecure and it is outside of legal limits. They will allowed forbearance to bring dollars cash. Let me emphasize once again, it is to bring dollars that they are holding outside the system to be able to bring them in and credit it to their bank accounts, as long as it is not proceeds of crime, illicit money. There will be no penalty, there will be no taxes, there will be no questions.

“They just meet the normal Know Your Customer criteria of banks and they have an opportunity to bring in those funds, make them safe, make them secure, and make them available through normal, economic activity.

” The details of that, the guidelines of that, will be released, first of all, the announcement by the Ministry of Finance and the guidelines later will follow very quickly by Central Bank.

“That is an opportunity, not just for people who would normally like to comply, to be compliant with the laws and normal business practice, but of course, 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”.

Minister also updated NEC on current economic relief measures, with 25 million Nigerians benefitting from federal social protection initiatives, including digital outreach, microenterprise loans, and sector-specific support for power, agriculture, manufacturing, health, and compressed natural gas (CNG) initiatives.

” In addition to that, we all know that food is critical and we all know about the increased cost of food at this particular time and it’s a question of affordability and availability, and it’s all about supply. So there are two ways that that is being confronted. First of all, we do have a short term program for millers to bring in raw materials, brown rice, in this instance, to be able to mill and sell and because it’s going to be duty free and levy free, the price will be lower.
He assured that the government will monitor food supply very carefully, adding that ” it is millers who decide to enter the programme that will be allowed. Of course, there will be a limit.

“The supply gap in rice, we believe, is about 2.5 million metric tons. So maybe half of that will be allowed to be filled by millers bringing in brown rice, raw material, and producing so that there can be affordability and availability in the marketplace.

“Similarly, we are working diligently to ensure that we have a very good harvest in front of us for the dry season harvest. Wheat, which begins planting in November, will have around 600,000 farmers who plant about 1 million hectares of wheat in November and rice in January and February cropping seasons.

“They are being supported with subsidized fertilizer, herbicide and improved seeds for higher yields from their efforts. So that’s in agriculture and likewise, and I think it’s been quite well publicized, the small scale businesses are being supported with relatively cheap loans at 9% and some element of the larger scale industries and manufacturers are also being helped with 9% money, which goes up to N1 billion.

“For the micro enterprises, N50 billion in grants has been about 90% disbursed now and that is to micro enterprises who get help with their businesses, with their working capital, and it’s free.”