The Federal Government of Nigeria has announced the launch of the Foreign Currency Voluntary Disclosure, Depositing, Repatriation, and Investment Scheme, referred to as the Disclosure Scheme.
This initiative is in line with Executive Order No. 15 of 2023, titled “Disclosure, Depositing, Repatriation, and Investment of Eligible Foreign Exchange Assets and Related Matters Order, 2023,” as well as the “Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024.”
This Disclosure Scheme was issued by the Minister of Finance of Nigeria, Wale Edun on October 25th, 2024. This Disclosure Scheme is a good development which is aimed at improving transparency within the financial sector and to strengthen the country’s economic resilience, growth and development.
By enabling the voluntary disclosure, depositing, repatriation, and investment of internationally tradable foreign currency owned by Nigerians, both domestically and abroad, the scheme seeks to incorporate these legitimate foreign currency assets into the formal economy.
The Disclosure Scheme was initiated to promote financial transparency in the sector by formalising the legitimate foreign currency assets held by Nigerians, whether they are located within or outside the Nigerian banking system.
Another objective of the Disclosure Scheme is to target weaknesses in the existing framework by pushing for cashless and legal transactions within the formal financial system. This in turn will bolster regulatory enforcement while also encouraging financial practices that decrease the likelihood of illicit cash transactions.
Wale Edun while launching this new scheme at Abuja stated “The Disclosure Scheme is a bold initiative aimed at integrating foreign currency outside the formal financial system into the formal economy. It strengthens transparency and economic resilience, setting us on a path to rapid economic growth.”
He stresses that “The scheme offers a secure, confidential channel for people to reintegrate their legitimate foreign currency funds, promoting stability and growth for our nation. Guided by President Tinubu’s leadership and supported by the Central Bank of Nigeria (CBN) and the Ministry of Justice, we are building a transparent and inclusive economy, aligned with best practices in anti-money laundering and countering the financing of terrorism.”
The Minister further added that Nigerians who earned legally can participate in this scheme. The scheme is also based on voluntary disclosure by eligible participants. The Disclosure Scheme will be open for participation for a period not exceeding nine (9) months from the date of commencement.
Moreover, Participants are required to maintain a domiciliary account with participating financial institutions, with deposited or repatriated funds held in a sub-account specifically designated for depositing foreign currency disclosed under the law.
