The Central Bank of Nigeria (CBN)
has directed banks to provide the submit the names, addresses and bank
verification numbers (BVN) of exporters that have defaulted in repatriating
their exports proceeds, for further action.
In a statement signed on Tuesday
by Ozoemena Nnaji, director of CBN trade and exchange department, the apex bank
said the directive is to ensure prudent use of the country’s foreign exchange
resources.
According to the statement,
Godwin Emefiele, the central bank governor, issued the directive at the
bi-monthly virtual meeting of the bankers’ committee.
This directive comes 24 hours after the CBN banned third parties from getting forex using Form M.
“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 is routed through a buying company,
agent, or other third parties,” the statement read.
Nnaji also said the directive
will eliminate incidences of over-invoicing, transfer pricing, double handling
charges and avoidable costs that are ultimately passed to the average Nigerian
consumer.
The CBN, together with the
bankers’ committee, has previously threatened sanctions against exporters who
divert foreign exchange from the export proceeds, instead of repatriating to
support the naira and boost the economy.
The statement also quoted analysts
as saying 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”.
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