By Sabiu Abdullahi
Strong indications have emerged suggesting that the Nigerian Federal Government is considering a groundbreaking policy that could lead to the conversion of over $30 billion in domiciliary accounts held by citizens into naira, aiming to stabilise the nation’s currency.
If the plan becomes a reality, the government is set to mandate the conversion of foreign currencies in individuals’ and corporate organizations’ domiciliary accounts to naira, with the exchange rate to be determined by the Central Bank of Nigeria (CBN).
A government source confided that the issue of dollar scarcity primarily affects the elite, particularly at the end and beginning of each month, coinciding with FAAC (Federal Account Allocation Committee) allocations to governors.
The government seeks to address the unconventional practice of keeping dollars in domiciliary accounts, stating that no other country follows this trend.
The source was quoted as saying, “In Nigeria today, there are over $30 billion in domiciliary accounts of individuals. It is in the CBN account. The records are there. It is not right. These are issues we will have to deal with. In other countries, dollars are not meant to stay in peoples’ accounts.”
This potential policy shift marks a departure from the stance expressed by the President Bola Tinubu administration in September 2023, which aimed to attract funds from domiciliary accounts and those held by Nigerians abroad into substantial investments across various sectors of the economy.
Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, disclosed this earlier, noting the need to tap into the significant funds held in domiciliary accounts and abroad to revitalize the economy.
Edun indicated that Nigerians in the Diaspora would play a crucial role in contributing to the proposed economic rejuvenation through increased productivity and efficient resource management.
The contemplated conversion policy, if implemented, represents a significant departure from the earlier strategy of attracting foreign funds for economic development.