Governor
Governor
CBN Goes Tough on Exporters Over Forex
Non-Repatriation
….Emefiele to Meet Multinational Coys CEOs
As part of its effort to increase foreign exchange liquidity in
the country, the Central Bank of Nigeria (CBN) has directed all
banks in the country to submit the names, addresses and Bank
Verification Numbers (BVN) of exporters that have defaulted in
repatriating their exports proceeds, for further action.
The directive issued by the CBN Governor, Mr. Godwin Emefiele,
on Tuesday, August 25, 2020, during the Bi-monthly virtual meeting
of the Bankers’ Committee, comes barely 24 hours after the Bank
announced the abolition of third-party “Form M” payment.
The move by the CBN followed the adoption of the strategy to
discourage over-invoicing, which some businesses have allegedly
used to divert foreign exchange from the country, through the
opening of “Forms M” for which payment are routed through a buying
company, agent, or other third parties.
The statement signed by the Bank’s Director of Trade and
Exchange, Dr. Ozoemena Nnaji, had also explained that the directive
was aimed at ensuring prudent use of Nigeria’s foreign exchange
resources and the elimination of incidences of over-invoicing,
transfer pricing, double handling charges and avoidable costs that
are ultimately passed to the average Nigerian consumer.
It will be recalled that the CBN, in the past, had also warned
exporters conducting export activity against diverting foreign
exchange from the export proceeds, instead of repatriating same
home.
The Bank, in collaboration with the Bankers’ Committee, had
threatened heavy sanctions against exporters who failed to
repatriate foreign exchange proceeds from their international
business. The CBN stressed that its Foreign Exchange Manual
provided that all exporters should repatriate export proceeds back
to the country to support the local currency and boost the
economy.
Meanwhile, analysts say that a number of punitive options are
open to the CBN, including, but not limited to, barring the
exporters from the foreign exchange market and other banking
services.
Meanwhile, in another development, Mr. Godwin Emefiele, has
disclosed plans to meet the Chief Executives of multinational
companies in Nigeria, to discuss the revamp of Nigerian
exports.
Mr. Emefiele dropped the hint during the meeting of the Bankers’
Committee, noting that the CBN was ready to encourage the revamp of
Nigeria’s export sector through deliberate policies that would
boost investment and job creation.
While decrying the situation where many Nigerian produce of
export quality were waiting to be tapped, Emefiele said the CBN, in
collaboration with the Federal Ministry of Industry, Trade and
Investment, would ensure the facilitation of a reboot of the
Nigerian export market.
Alluding to President Muhammadu Buhari’s charge for Nigerians to
produce what they eat and eat what they produce, the CBN Governor
reiterated that the country had no choice but to diversify its
economic base away from heavy reliance on crude oil.
The meeting is expected to come up with a roadmap on how best to
revitalize the export sector in order to earn foreign exchange for
the country, as well as generate jobs for millions of
Nigerians.
It would be recalled that the Emefiele had earlier initiated a
campaign tagged ‘Produce, Add Value and Export’ (PAVE), especially
for the agricultural produce.