You may have heard that the process of sending money to Nigeria has changed recently. The Central Bank of Nigeria has shifted to only accepting transfers in USD.
To encourage international money transfers into the country in USD, the Central Bank of Nigeria has started a new incentive where they add 5 Naira for every USD received in Nigeria.
The ‘Naira 4 Dollar’ scheme will run for a limited period. But it means that you and your family can benefit from sending money to Nigeria. Making money transfers might also be on your mind as we get closer to Ramadan. So it’s important that you know what’s going on. Right now is the best time to send money to Nigeria for two reasons: the Naira 4 Dollar Scheme and Ramadan.
The New Changes
The Naira 4 Dollar is a new scheme designed to boost international money transfers into Nigeria in USD. This scheme has made it advantageous to send money to Nigeria. And it also aims to improve the relationship of Nigerian currency to USD.
“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.”(Coindesk)
What does remittance mean?
You may have heard the word before. But it is important to know what it means if you want to get the most out of the Naira 4 Dollar scheme.
“A remittance refers to a money transfer that is sent as a payment or gift to another party. You may send a payment remittance to meet a bill or invoice obligation. Transfers sent abroad from foreign workers to their family in a native country are also known as remittances.”(Brex)
In short, remittance means money transfers.
How does the scheme work?
The scheme functions in a relatively simple way. “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.” (CBN.Gov)
For example, if you receive 1000 USD in a transfer, the Central Bank of Nigeria will add 5000 Nairas to the pick-up amount. This incentive system is designed to benefit the Nigerian economy but it will also allow you and your loved ones to gain from money transfers.
When is this scheme taking place?
The scheme is valid from the 8th of March to the 8th of May. So time is of the essence.
The average exchange rate of Dollar to Naira this year has been 1 United States Dollar to 385.10 Nigerian Naira. In order to act promptly during March, April and the beginning of May you should keep your ear to the ground and stay abreast of any changes in the Nigerian economy.
The Dollar to Naira scheme has made it even more important to know how to send money digitally through a secure system. Take a look at this FAQ page on the current financial situation in Nigeria right now to find out more.
Staying connected during Ramadan
The other big reason why now is a busy time for sending money is that it will soon be Ramadan. Staying connected during this month is especially important if you are living overseas and have family or friends in Nigeria.
As Muslims throughout the world observe their holy month during another year disrupted by the pandemic it is important to consider the practical matters. How will you support your loved ones if you can’t be there with them? What is the safest way to send money?
The ability to securely send money across the world is vital during Ramadan. You may want to make Zakat donations or send money for gifts to celebrate Eid al-Fitr. Thankfully, you can rely on Small World to help you easily and securely transfer funds.
Now more than ever it is important to be able to get your money where it needs to be. During Ramadan, you may want to make multiple transfers to a variety of accounts across several weeks. This is all possible with the help of Small World. Sending money digitally does not need to be a luxury.
How to send money to Nigeria now
Right now is the best time to send money to Nigeria. Make sure you can make the most of the Naira 4 Dollar scheme by using Small World. We’re here to help ensure that when you need to you can send money securely and quickly.
Use Small World to make transactions via your local agent or Small World branch, over the phone, online or by using our app. As you adapt to the new changes you can use Small World to stay in touch with your people and know that your transfers are safe and sound!
