ABUJA, Federal Republic of Nigeria. February 21, 2015 – The Central Bank of Nigeria [CBN] has warned cautioned foreign exchange dealers and banks against undue delay in repatriating proceeds from oil and non-oil exports to the domiciliary accounts within the stipulated time.
Through a circular reference TED/FEM/FPC/GEN/01/005 dated February 19, 2015, subject: “Repatriation of Export Proceeds (Oil and Non-Oil)” and signed by Olakanmi Gbadamosi, director at the trade and exchange department, the CBN said: “Pursuant to the provisions of Paragraph (4) Memorandum (11) of the Foreign Exchange Manual, in respect of the repatriation into the export proceeds, all authorised dealers are requested to note that: proceeds of oil and non-oil exports are to be repatriated into the export proceeds domiciliary accounts of their respective exporter’s accounts within ninety (90) days for oil exports and one hundred and eighty days (180) for non-oil exports, failing which the collecting bank will be liable to a fine of 10% of the FOB value of the transaction, including other appropriate penalties as provided in the BOFIA Act of 1991, as amended. 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 the foreign exchange market in Nigeria.”
On February 20, 2015, via another circular reference TED/ FEM/FDC/GEN/01/006 dated February 20, 2015, subject: “Clarification on the Provisions of Memorandum 26, Paragraph (5) Section (D) of the Foreign Exchange Manual RE: Unfettered Access to Funds in Export Proceeds Domiciliary Accounts”, and signed by Olakanmi Gbadamosi, director at the trade and exchange department, the CBN said: “for the avoidance of doubt, all authorised dealers and the general public are to note that henceforth, the term “unfettered access” granted to holders of export proceeds domiciliary accounts shall be strictly construed to mean that the proceeds of exports in the accounts can only be used by the exporters to finance eligible and other trade related transactions supported with appropriate documentation.”
Meanwhile, the bank in a circular to all authorised dealers Ref No TED/ FEM/FDC/GEN/01/006 issued yesterday has clarified the provision of Memorandum 26 Paragraph (5) Section D of the Foreign Exchange Manual relating to Access to Fund in Export Proceeds Domiciliary Accounts due to what it termed different interpretation of the provisions.
The Circular issued by the Director, Trade and Foreign Exchange Department, Mr. Olakanmi Gbadamosi, stated that “for the avoidance of doubt, all authorised dealers and the general public are to note that henceforth, the term “unfettered access” granted to holders of export proceeds domiciliary accounts shall be strictly construed to mean that the proceeds of exports in the accounts can only be used by the exporters to finance eligible and other trade related transactions supported with appropriate documentation.”
