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Nigeria To Bar Exporters Withholding Proceeds From Bank Services

Nigerian exporters that have not repatriated export proceeds will be barred from all banking services from Jan. 31, the Central Bank of Nigeria (CBN), has said.

According to Bloomberg, the new directive applies to exports up until June last year, central bank spokesman, Osita Nwanisobi said by text message on Saturday.

“Proceeds for oil are to be repatriated within 90 days and non-oil within 180 days”, he said.

“The measures are part of an effort to defend the country’s currency by targeting importers and exporters with tougher regulations.

“That’s after a plunge in oil prices and the coronavirus pandemic led to dollar shortages in Africa’s largest crude producer resulting in a wide spread between the official exchange rate and the parallel market. The differential of about 25% has created an incentive for exporters to divert forex income to unofficial channels”, he said.

It would be recalled that the apex bank ordered exporters to register with it through an online portal to ensure the repatriation of proceeds last year.

The Abuja-based regulator has also ordered banks to report exporters that fail to repatriate income earned abroad.

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