Nigeria has introduced a nine-month initiative to encourage citizens with foreign assets to repatriate and invest them locally, Finance Minister Olawale Edun announced. The program is part of a larger economic strategy to address persistent dollar shortages that have hindered imports and business operations across the country.
Under this voluntary disclosure scheme, individuals declaring “legitimate” foreign currency holdings and investing them in Nigeria’s financial system will be exempt from paying tax on interest earned. This move, according to Edun, provides a “secure, confidential channel” for reintegrating foreign currency assets into the formal economy, bolstering stability and growth.
The scheme also applies to Nigerians with foreign currency assets held outside traditional financial institutions, such as cash in safety deposit boxes.
President Bola Tinubu has implemented various reforms aimed at reinvigorating the economy, which has seen modest growth around 3%—short of Tinubu’s 6% annual target. Key policy changes, including cuts to petrol and electricity subsidies and multiple naira devaluations, have received a positive response from investors.
In addition to driving growth, the government hopes the program will curb illicit financial flows and increase tax revenues, although previous similar schemes have had limited participation.
