The Federal Government of Nigeria has introduced a bold nine-month policy encouraging citizens who hold dollar bills outside the banking system to deposit these funds without fear of penalties, taxes, or intrusive questioning.
In a move intended to boost economic transparency and strengthen the nation's financial security, Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced the policy after a National Economic Council (NEC) meeting on Thursday.
Edun outlined the policy’s scope, emphasizing that citizens could now deposit dollar cash into their bank accounts without fear of legal repercussions, provided the funds meet typical banking “Know Your Customer” (KYC) standards and are not connected to criminal activities.
"There will be no penalty; there will be no taxes, and there will be no questions,” Edun assured reporters, reiterating the government’s intention to support Nigerians in safeguarding their cash holdings and integrating them into the formal banking system.
The program is set to run from October 31 for nine months, during which Nigerians holding dollar bills outside the formal banking system can deposit these funds securely into their bank accounts.
The policy represents a partnership between Nigeria’s Ministry of Finance and the Central Bank of Nigeria (CBN), focusing on reducing the number of unregulated dollar holdings in the country.
According to Edun, “This policy will make it easier for individuals to use these funds in day-to-day economic activities, increasing the funds' safety and security by bringing them within legal limits.
“The policy is primarily designed to provide security and legality to dollar funds being held outside the banking sector.”
While noting that cash held outside formal financial institutions is not only insecure but also poses broader risks to the economy, Edun said, “As long as it is not proceeds of crime, illicit money, individuals are encouraged to bring their cash into the banking system.”
The program forms part of a larger suite of economic initiatives focused on improving financial inclusion and enhancing the transparency of Nigeria’s economy.
By encouraging individuals to deposit unbanked funds, the government aims to increase liquidity in the formal financial system and enable greater economic participation by ordinary citizens.
This announcement is part of a broader social and economic strategy that has already positively impacted millions of Nigerians.
According to Edun, over 25 million Nigerians have benefited from federal social protection programs, with support reaching various sectors, including agriculture, health, and digital finance.
“These initiatives have targeted digital outreach, microenterprise loans, and essential industry-specific support measures, including programs for agriculture, power, manufacturing, and compressed natural gas.
Economic analysts suggest that the new policy could result in a notable increase in bank deposits and help alleviate the challenges associated with currency circulation outside the banking sector.
For many Nigerians who have faced limited options for securing foreign currency holdings, this policy could provide a safer and more flexible option for managing their cash reserves.
The government’s outreach on the policy has underscored the benefits for the individual while also addressing national concerns.
Officials are hopeful that by easing restrictions and removing fear of penalties, citizens will feel more inclined to participate in Nigeria’s formal banking system, ultimately contributing to the country’s economic growth and security.
The nine-month grace period serves as an invitation for those holding unregistered dollar cash to benefit from the protections offered within the formal banking sector, a development that analysts expect will create positive economic ripple effects across the country’s financial landscape.
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