PRESIDENTIAL EXECUTIVE ORDER NO 15 OF 2023 FOREIGN EXCHANGE ASSETS

What Is This Policy?

A Presidential Executive Order establishing a voluntary Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme, providing a 9-month window for Nigerians to formalize legitimate foreign currency holdings into the formal banking system.

Who Does It Target?

Nigerians holding legitimately earned internationally tradable foreign currency, both within and outside Nigeria, as well as participating financial institutions.

What Does It Aim to Achieve?

Enhance financial transparency, integrate foreign currency outside the formal financial system into the formal economy, strengthen AML/CFT capabilities, bolster liquidity, and promote investment in key economic sectors.

Key Features

9-Month Disclosure Window: Time-limited scheme for voluntary foreign currency disclosure and deposit Tax Immunity: Disclosed funds exempt from tax audits or liabilities Asset Protection: Disclosed assets exempt from expropriation or seizure Confidentiality: All disclosed information treated with highest confidentiality 5-Year Retention: Participants commit to retaining disclosed currency for minimum 5 years Investment Channels: Funds can be invested in permissible sectors designated by the President

Current Status

Rollout Stage: Active; scheme launched October 2024 Coverage: Nationwide; all Nigerians with eligible foreign currency Lead Agencies: Ministry of Finance, Central Bank of Nigeria, Ministry of Justice Scheme Guidelines: Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme Guidelines, 2024 Participating Institutions: Commercial, Merchant, and Non-Interest Banks approved by CBN

How to Access

Participants must open or maintain a domiciliary account with participating financial institutions. Requirements include: full name, Bank Verification Number (BVN), National Identification Number (for individuals), or Tax Identification Number (for legal entities). Apply through participating banks. Visit finance.gov.ng/disclosurescheme for details.

Important Terms

Funds must be retained for minimum 5 years; withdrawal only for permissible investment sectors Enhanced due diligence applies for funds from non-FATF compliant jurisdictions Tax-free interest earned on balances in designated accounts Participants can repatriate foreign currency at prevailing exchange rate Scheme is based on voluntary participation only

Impact & Metrics

Aims to integrate billions of dollars in foreign currency outside the formal system into the Nigerian economy, strengthen fiscal position, boost liquidity, and promote infrastructure investment and job creation.

Official Resources

Website: finance.gov.ng/disclosurescheme Contact: Ministry of Finance and Coordinating Minister of the Economy, Abuja; Central Bank of Nigeria

Legal Framework

Issued as Executive Order No. 15 of 2023 under the executive powers vested in the President by Section 5 of the 1999 Constitution (as amended). Operates under the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, the Central Bank of Nigeria Act 2007, the Federal Inland Revenue Service (Establishment) Act, and the Money Laundering (Prevention and Prohibition) Act 2022. Participating banks are licensed under the Banks and Other Financial Institutions Act (BOFIA) 2020.