10 implications of CBN ban on US$ Domiciliary accounts in Nigeria
- nationalpilot
- Aug 9, 2015
- 2 min read
1. BTA is reduced from $10,000 to US$4000 with provision of visa and passport for proof before CBN will approve such BTA in US$ cash.
2. Till further notice, Bureau De Change is dead in Nigeria! Nobody goes around looking for US dollars again? For what?
3. Those involved in bureau de CHANGE are complaining to Buhari for kicking them out of business!
4. The ban was intentional to hit those politicians with large sum of US$ siting in the bank account in Nigeria and to strengthen Naira.
5. Since the introduction of the ban since Monday, US$1 to Naira has reduced from N244 to N215 today (Friday Aug 7). Let's hope this remain for 90 days and re-evaluate again!
The Good and Bad News for Nigerians that reside abroad:
6. If you want anyone to wire money (Naira or dollars) to you abroad from Nigeria, for you to receive US$ in your bank account abroad, it's not possible anymore except the sender fills a form called "form A" at Nigerian bank that will require CBN approval for money in US$ for school fees, medical expenses, house mortgage abroad only to be permitted. You can also fill form M for foreign business transaction. Any other reasons, not permitted till further notice!
7. Nigerians abroad will still be able to send money home with vi Bank to Bank Wire Transfer or Via Western Union (or equivalent), however, the receiving account/person will only be able to receive Naira equivalent of money sent (not US).
8. With the new policy, US$ currency cannot be lodged / deposited or withdrawn as US$ cash anymore in Nigeria except it's converted to Naira for you before while depositing or before withdrawal.
9. Any privately owned oil refinery in Nigeria will have to buy crude oil per barrel from NNPC in Naira not dollars once any of the private refinery begins operation.
10. The maximum $US notes you can travel with to Nigeria is $2500 which you have to declare at the Nigerian point of entry at the henceforth. Other alternatives when coming to Nigeria, have with you your credit cards (Visa & MasterCard) and interac debit cards for getting Naira at ATMs in Nigeria at official rates.
If you have further clarifications or query contact your local bank manager in Nigeria.
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