Nigeria Is Now Rewarding Citizens for Using Licensed Money Senders, Not Crypto

The Central Bank of Nigeria (CBN) is incentivizing citizens to use licensed international money transfer operators (IMTOs) to send and receive money, according to a report by the BBC.

  • In a letter dated March 5 and signed by Associate Director A.S. Jibrin, the CBN said it launched the “Naira 4 Dollar Scheme” for remittances in a bid to funnel payments from abroad through official channels.

  • The incentive program went into effect on Monday and ends May 8.

  • “In effect, a typical recipient of diaspora remittances will, at the point of collection, receive not only the [U.S. dollars] sent from abroad but also the additional [5 naira] per [1] USD received,” the letter states.

  • In February, the CBN issued a five-page statement clarifying its position on cryptocurrencies, stating they are not a form of legal tender in Nigeria.

  • As a means for cross-border payments, cryptocurrencies remain a popular option in the West African nation.

  • According to data site UsefulTulips, Nigeria is by far the leading country in Sub-Saharan Africa for peer-to-peer bitcoin trading volume.

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