In a bid to stem the continuous decline of the Nigerian Naira, the government has announced an amnesty program targeting individuals holding foreign currency outside of the banking system, Bloomberg reports.
The program, which will run for nine months, offers a safe haven for individuals to repatriate their foreign currency holdings without fear of tax audits or asset expropriation.
“This scheme offers a secure, confidential channel for people to reintegrate their legitimate foreign currency funds, promoting stability and growth for our nation,” said Finance Minister Wale Edun in a statement released on Thursday.
The Naira has faced a turbulent year, plummeting to a record low against the US Dollar. The currency is currently Africa’s worst performer after the Ethiopian Birr, with Thursday’s drop of 2.7% pushing it to 1,675.40 per dollar.
Analysts attribute the Naira’s woes to low liquidity in the foreign exchange market, a problem exacerbated by widespread dollar hoarding amongst residents seeking protection from the currency’s volatility. The government has attributed this hoarding to a lack of confidence in the local currency, stemming from years of multiple exchange rate policies.
President Bola Tinubu’s administration has taken steps to address the issue, including allowing the Naira to trade more freely and scrapping the multiple exchange rate system. This amnesty program is the latest initiative aimed at restoring confidence in the Naira and bolstering its value.
