The Central Bank of Nigeria (CBN) has introduced the CBN “Naira 4 Dollar Scheme” as an incentive for senders and recipients of international money transfers.1 More specifically, all recipients of diaspora remittances through CBN licensed International Money Transfers Operators (IMOs) will be paid N5 per $1 received as remittance inflows in addition to the USD sent from abroad. This will however last from March 6, 2021 to May 8, 2021. The Naira 4 Dollar Scheme is being put in place to incentivize foreign exchange inflows into the country and increase foreign reserves. The scheme is likely to deter the CBN from further devaluing the currency following improved foreign exchange inflows. However, the effect of the scheme on Nigeria’s balance of payment account should be seriously considered in order not to push the country into further deficit.
March 24, 2021
Nigeria Economic Update (Issue 10)
Related
Nigeria Economic Update (Issue 3)
The
Nigeria stock market indices; All Share Index (ASI) and Market Capitalization
declined by 2.4 percent to close at 26537.36 points and N9.12 trillion
respectively at the end of the trade session this week8 The decline
in the indices, which is attributed to the low subscription for stocks in the
market, led to the partnership between Security and Exchange Commission (SEC)
and Debt Management Office (DMO) to salvage the financial system.
Nigeria Economic Update (Issue 40)
Global crude prices settled lower in the review week (September 29 to October 6, 2017). Precisely, a barrel of Brent crude sold for about $56, showing a 6.3 percent decrease. Nigerias Bonny light exchanged at $56.76 per barrel as at October 6, 2017. The draw down in price may be attributable to indications of higher output, as revealed by the addition of more production rigs by the U.S, rise in Iraqs crude exports and survey showing OPECs overall boosted supply.
Nigeria Economic Update (Issue 18)
Recent Data released by the Nigeria Bureau
of Statistics reveals an increase in total public debt stock between 2015 and
2016. Foreign and domestic debt stock stood at $11.4 billion and N14.0 trillion
respectively as at December 2016, from $10.7 billion and N10.5
trillionrecorded as at December 2015. Disaggregated
data shows that foreign debt sources comprised Multilateral ($8.0 billion),
Bilateral ($0.2 billion) and Exim bank of China ($3.2 billion); domestic
sources included government bonds, treasury bills and bonds. The federal
government and states accounted for 68.7% and 31.3% respectively of foreign
debt stock; 78.9% and 21.1% respectively of domestic debt stock. This maybe
particularly at the backdrop of government borrowings in 2016 to finance its
expenditure (mostly recurrent).