CBN moves to punish exporters over non-forex repatriation

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, which was recently issued by the CBN Governor, Mr Godwin Emefiele, indicated that the apex has adopted 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 is routed through a buying company, agent, or other third parties.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 it’s 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, on the prompting of the CBN Governor and the Bankers’ Committee members have unanimously agreed to extend special facilities to Nigerian-registered airlines and the media industry in Nigeria.

The move would enable them to adequately address the negative impact of the coronavirus pandemic.

Emefiele urged the banks to do all within their powers to support airlines in the country, noting that such support was critical to helping the industry recover from the economic crisis triggered by the COVID-19 pandemic.

Similarly, he urged the banks to support the efforts of the media industry in Nigeria, to cope with the lingering pandemic, in order to avoid massive job losses in the industry.

It would be recalled that the CBN, in the advent of the coronavirus in Nigeria, announced an N1.2trillion intervention funds to support critical sectors of the economy out of this amount, N1trn was to support local manufacturing sector and to boost import substitution.

The remaining N100billion of the intervention fund was to support the health sector in equipping laboratories and enhancing research to produce vaccines and test kits in Nigeria.

The Bank, also in March 2020, unveiled guidelines for the implementation of N100billion Targeted Credit Facility as a stimulus package to support households and micro, small and medium enterprises affected by the COVID-19 pandemic.