The Central Bank of Nigeria has ordered International Money Transfer Operatives (IMTO) to pay a N5 fee for every $1 on diaspora remittances. 

The document released on Friday, says this directive is made “in an effort to sustain the encouraging increase in inflows of diaspora remittances.”

Commercial banks have also been directed to pay recipients of remittances from abroad the N5. This directive, named “Naira 4 Dollar scheme” is set to begin on March 8 and end in May.

In February, the CBN instructed Nigerian commercial banks to open dollar accounts for their customers immediately they receive deposit requests from International Money Transfer Operators, also mandating IMTOs to pay diaspora remittances to its beneficiaries in dollars.

This directive comes as the apex body struggles to keep up with the devaluing naira at foreign exchange markets. 

On Friday, naira fell against the U.S. dollar at the Investors & Exporters (I&E) window of the foreign exchange market, closing at N480 to $1. The CBN’s official rate however was still N379 to $1.

The naira has now been devalued at least three times at the official investors’ and exporters’ window, moving from N307 to N360 In March 2020 and then to N380 in August.