CBN to blacklist exporters withholding forex proceeds

The Central Bank of Nigeria (CBN) is threatening to sanction exporters who fail to repatriate foreign exchange (forex) proceeds from their businesses into the economy.

CBN Director (Banking Supervision) Abdullahi Ahmad, who issued the warning yesterday during the Bankers’ Committee meeting in Lagos, spoke of a provision in the CBN Foreign Exchange Manual that mandates all exporters to repatriate their proceeds back to the country to support the local currency and the economy.

The manual stipulates that proceeds of oil and non-oil exports are to be repatriated into the export proceeds domiciliary accounts of their exporters’ accounts within 90 days for oil exports and 180 days for non-oil exports. Where this policy is violated, the collecting bank will be liable to a fine of 10 per cent of the Free On Board value of the transaction, including other appropriate penalties as provided in the Banks and Other Financial Institutions Act.

Likewise, where the exporter fails to repatriate the proceeds into the domiciliary account within the stipulated period, the exporter will be barred from participating in all the segments of foreign exchange market in Nigeria.

Nation, October 6, 2017

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