The federal government has warned those keeping dollars outside the banking system of facing severe financial penalties if they fail to bring those funds into the financial system within the next nine months.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun disclosed this new government policy on Thursday while briefing journalists at the end of the National Economic Council, NEC, chaired by Vice President, Kashim Shettima, at the council chamber presidential villa in Abuja.
According to the minister, such persons have a nine-month grace period to comply with the directive without attracting legal liability or financial penalties.
Edun said: “One element of the cost increase is the foreign exchange rate, and that is demand and supply. There is going to be a release today, details by the federal government through the Ministry of Finance, in conjunction with the Central Bank, a program, starting today, 31st of October, and lasting nine months, that will allow people to bring in cash that is outside the banking system.
“So, therefore, it is unsafe, it is unsecured and it is outside of legal limits. They will allowed forbearance to bring dollars cash. Let me emphasize once again, it is to bring dollars that they are holding outside the system to be able to bring them in and credit it to their bank accounts, as long as it is not proceeds of crime or illicit money. There will be no penalty, there will be no taxes, and there will be no questions.
“They just meet the normal ‘Know Your Customer’ criteria of banks and they have an opportunity to bring in those funds, make them safe, make them secure, and make them available through normal, economic activity.
“The details of that, the guidelines of that, will be released, first of all, the announcement by the Ministry of Finance and the guidelines later will follow very quickly by Central Bank.
“That is an opportunity, not just for people who would normally like to comply, to be compliant with the laws and normal business practice, but of course, it gives us an opportunity to bring those dollars from where they are doing nothing to where they are within the financial system, they add to our reserves, and of course can help with the exchange rate”.
Edun also gave an update on the Excess Crude Account currently standing at $473,754.57, the Natural Resources Fund at ₦26,105,837,627.67, and the Stabilization Account at ₦36,299,452,763.62.