The
Central Bank of Nigeria (CBN) has reiterated its resolve to heavily sanction
exporters that fail to repatriate their export proceeds within the stipulated
days for oil and gas as well as for non-oil exports.
Specifically, it stressed that any exporter that defaults
in the repatriation of export proceeds within the stipulated period shall be
barred from accessing all banking services including access to the foreign
exchange market.
The
central bank gave the warning in a circular titled: “Re: Repatriation of Export
Proceeds (Oil and Non-oil),” signed by its Director, Trade and Exchange
Department, Mr. W.D. Wotring, a copy of which was posted on its website at
the weekend.
The three-paragraph circular explained: “Further to the
provisions of the circular Reference: TED/FEM/FPC/GEN/01/005 of February 19,
2015,on the above subject, exporters are hereby reminded that failure to
repatriate their exports proceeds within the stipulated 90 days for oil and gas
and 180 days for non-oil exports constitute a breach of the extant regulation.
“Consequently, any exporter that defaults in the repatriation of
export proceeds within the stipulated period shall be barred from accessing all
banking services including access to the foreign exchange market. Please
note and ensure compliance accordingly.”
The central bank had earlier this month stated that exporters
that fail to repatriate their forex earnings within the stipulated time would
be blacklisted from the banking system.
The acting Director, Corporate Communications, CBN, Mr. Isaac
Okorafor, had stressed that any exporter that fails to abide by the
rules would be sanctioned and would not have the opportunity to transact
business with any bank.
The CBN Director, Banking Supervision, Ahmed Abdullahi had also
explained that “there is a provision in the foreign exchange manual that
requires all exporters to repatriate the proceeds of their exports. The fact is
that a number of exporters don’t. The Bankers Committee deliberated on that
matter and felt that there is a need to sanction those exporters
appropriately.”
As part of efforts to boost activities in the non-oil sector of
the economy, the CBN recently unveiled a N500 billion low interest rate non-oil
export facility.
The banking sector regulator in the guidelines had stated: “The Non-Oil Export
Stimulation Facility (ESF), said the fund was established to support the
diversification of the economy away from oil and to expedite the growth and
development of the non-oil export sector.”
According to the guidelines for operating the fund, the CBN will
invest in a N500 billion debenture to be issued by Nigerian Export-Import Bank
(NEXIM) in line with section 31 of CBN Act.
It further stated that the facility was essentially designed to
redress the declining export credit and reposition the sector to increase its
contribution to revenue generation and economic development. It will improve
export financing, increase access of exporters to low interest credit and offer
additional opportunities for them to upscale and expand their businesses in
addition to improving their competitiveness.
The guidelines further stated that the Nigerian Export – Import
Bank (NEXIM) shall be the Managing Agent of the Non-Oil Export Stimulation
Facility (ESF). It shall be responsible for the day-to-day administration of
the Facility and rendition of periodic reports on the performance of ESF to
CBN.
“Facilities with a tenor of up to three (3) years, would be
granted at a maximum all-in interest rate of seven and half percent (7.5%) per
annum; Facilities with tenor of over three (3) years, would be granted at a
maximum all-in interest rate of nine percent (9%) per annum.
“Export of goods wholly or partly processed or manufactured in
Nigeria; Export of commodities and services, which are permissible and excluded
under existing export prohibition list; Imports of plant and machinery, spare
parts and packaging materials, required for export oriented production that
cannot be produced locally; Export value chain support services such as
transportation, warehousing and quality assurance infrastructure;
Resuscitation, expansion, modernisation and technology upgrade of non-oil
exports industries and; Stocking Facility/Working capital,” the guidelines
added.
Source: Thisdaylive.com
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