Exporters who fail to repatriate proceeds of their export will be denied access to all banking services by January 31. This is according to the latest directive given to banks according to the Central Bank of Nigeria (CBN).
The directive was issued in a circular sent to banks in the country.
Exporters are mandated to adhere to the apex bank’s directive before the specified date. Some banks have already released a statement directing exporters to comply with the directive.
In August 2020, banks were directed by the CBN to provide details of defaultig exporters.
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Bloomberg quotes Osita Nwanisobi, CBN acting director of corporate communications, as saying that the new directive applies to exports up until June 2020.
“Proceeds for oil is to be repatriated within 90 days and non-oil within 180 days,” he said.
The news agency noted that the measure is part of an effort to defend the country’s currency by targeting importers and exporters with tougher regulations.
Global decline of crude oil prices coupled with the economic impact of the COVID-19 pandemic led to the scarcity of foreign exchange in Nigeria.
This resulted in a significant difference between the official exchange rate and the parallel market rate.
It added that the differential of about 25 percent has induced exporters to divert forex earnings to unofficial channels.
