The Central Bank of Nigeria (CBN) has given all authorised dealers and the public 90 and 180 days to repatriate into export proceeds domiciliary accounts of their respective export accounts, proceeds from oil and non-oil exports respectively.
In a circular signed by Olakanmi Gbadamosi, director, trade and export department of CBN, failing to implement the directives will subject the collecting bank to a fine of 10 percent of the Free On Board (FOB) value of the transaction, including other appropriate penalties as provided in the BOFIA Act of 1991 as amended.
According to the circular, where an 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 in Nigeria.
Meanwhile, the CBN on Wednesday closed its official foreign exchange window to importers, a development analysts see as a welcome development.
“It is better news for importers as it means that the uncertainty over whether a type of FX demand is admissible at the RDAS or not is no longer relevant”, Razia Khan, Managing Director, Head, Africa Macro, Global Research, Standard Chartered Bank, said.
However, she added that for importers that did previously benefit from the subsidised FX rate, the feedthrough from a weaker FX rate will now be immediate.
“We will be monitoring closely the impact on prices in Nigeria, as we can track the prices of basic food items in real time”, she added.