CBN mandates exporters to repatriate earnings

CBN mandates exporters to repatriate earnings

The Central Bank of Nigeria (CBN) has said exporters who fail to repatriatetheir earnings into their domiciliary accounts within the stipulated period will be barred from the foreign exchange market.

In a circular issued on Thursday by the Director, Trade and Exchange
Department, Mr. Olakanmi Gbadamosi, the CBN asked all authorised
dealers to ensure strict compliance, citing the provisions of Paragraph
(4) Memorandum (11) of the Foreign Exchange Manual in respect of
the repatriation of export proceeds.

It stated, “Proceeds of oil and non-oil exports are to be repatriated
into the export proceeds domiciliary accounts of their respective
exporters’ accounts within 90 days for oil exports and 180 days for
non-oil exports, failing which the collecting banks will be liable to a
fine of 10 per cent of the FOB value of the transaction, including other
appropriate penalties as provided in the BOFIA Act of 1991, as
amended.

“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 market in
Nigeria.

“Please be guided accordingly and ensure strict compliance,” the CBN
said.