In a bold move to stabilize Nigeria's foreign exchange reserves and curb the circulation of unregulated dollar cash, the Federal Government has issued a nine-month amnesty to Nigerians holding dollar bills outside the banking system.
This initiative, announced by Finance Minister and Coordinating Minister of the Economy, Wale Edun, following the National Economic Council (NEC) meeting in Abuja, allows individuals to deposit dollars into Nigerian banks without incurring penalties, taxes, or facing questions about the source—provided it’s not linked to crime or illicit activities.
“This initiative is a window of opportunity,” Edun assured at Thursday’s briefing, emphasizing that the new policy is geared toward creating a safe, secure, and legally compliant way for people to integrate their dollar holdings into the formal financial system. “There will be no penalty, no taxes, and no questions asked. They just need to meet the banks’ usual ‘Know Your Customer’ (KYC) requirements, and their funds will be safely credited.”
The program, which commenced on October 31, will run for nine months in collaboration with the Central Bank of Nigeria. It encourages Nigerians holding dollar cash outside of regulated channels to bring those funds into banks, thereby reducing the risks of holding large amounts of currency outside the formal sector. “It’s an opportunity to secure funds and contribute to the economy through proper channels,” Edun explained, citing safety and economic benefits of regularizing these assets.
In a broader context, Edun highlighted the Federal Government’s ongoing efforts to support vulnerable populations, noting that approximately 25 million Nigerians have already benefited from various social protection initiatives.
These include digital financial outreach, micro-loans, and sector-specific support programs targeting industries such as agriculture, health, manufacturing, and clean energy, including compressed natural gas (CNG).
This dollar cash amnesty initiative represents a significant step toward financial inclusion and currency stabilization, aiming to encourage more Nigerians to participate in formal economic channels while ensuring funds held in cash outside banks are made available for productive use.
As the amnesty program unfolds, financial experts will be watching closely to assess its impact on dollar liquidity and currency stabilization in Nigeria.