In recent years, the government of Nigeria has come up with various initiatives to fight against financial corruption and the use of shady, informal channels to send/receive money. One of the more successful measures was the Naira 4 Dollar scheme proposed by the Central Bank of Nigeria.
Under this plan, any international money transfer to Nigeria can only be paid in US$. In addition to fighting against corruption, the Naira 4 Dollar scheme has strongly increased remittance inflow into Nigeria.
If you’re from Nigeria or plan on sending money there, keep reading this article to see how the Naira 4 Dollar scheme works because you’ll need it.
Initially, the government of Nigeria wanted to discourage the use of informal money transfer channels. Instead, the government wanted people to move towards official, regulated channels to combat money laundering, illegal arms dealership, and tax evasion.
The second goal was to improve Nigeria’s remittance volume. Due to globalisation, millions of Nigerians have found profitable employment in foreign countries. These opportunities have allowed the migrant workforce to cover their own living expenses and help out their families, loved ones, and friends back in Nigeria.
The Naira 4 Dollar scheme became an incentive plan for Nigerian immigrants to help boost economic growth back home. Consequently, for every US$ sent into Nigeria, the government adds five Naira to the transfer amount.
When you send money to your friends or family back in Nigeria, they need to visit their bank and mention the Naira 4 Dollar scheme to collect the bonus. They can collect it in cash or transfer it directly into their account.
If you’re using a remittance provider like Lycaremit, you’ll see no mention of the bonus in the transfer history. It’s because the bonus is paid by the recipient bank, not the remittance provider.
In addition, you don’t have to register for anything to get the bonus. All you have to do is send money through a recognised and regulated international remittance provider like Lycaremit. Plus, the person on the receiving end should have an existing account with a certified Deposit Money Bank (DMB)
With the growing number of exchange students, international businesses, and migrant workers in every part of the world, it’s common for folks to wire funds toward helping their loved ones back home. That’s the whole point of the Naira 4 Dollar scheme and the primary reason the Central Bank of Nigeria introduced it in the first place. Therefore, if you’re planning on sending money to Nigeria and receiving the 5 Naira bonus, all you need is a reliable remittance provider like Lycaremit. Lycaremit is one of the few service providers with an established customer base in Nigeria, allowing its customers to quickly make transfers while paying minimum fees and receiving sensible exchange rates