The Central Bank of Nigeria (CBN) is going tough on exporters who have defaulted in repatriating their export proceeds amid foreign exchange crisis in the country.
The apex bank has directed Nigerian banks to submit the names, addresses and Bank Verification Numbers (BVN) of the defaulters for further action.
The director of CBN Trade and Exchange Department, Ozoemena Nnaji, disclosed this in a statement released on Tuesday, August 25. He said the directive is to ensure prudent use of the country’s foreign exchange resources.
The statement said the CBN Governor, Godwin Emefiele, issued the directive at the bi-monthly virtual meeting of the bankers’ committee.
Emefiele gave the directive 24 hours after the CBN banned third parties from accessing forex using Form M.
“The move by the CBN followed the adoption of the strategy to discourage over-invoicing, which some businesses have allegedly used to divert foreign exchange from the country, through the opening of “Forms M” for which payment is routed through a buying company, agent, or other third parties,” the statement read.
According to Nnaji, the directive will put an end to cases of over-invoicing, transfer pricing, double handling charges and avoidable costs that are eventually passed to the average Nigerian consumer.
The defaulting exporters had previously been warned by the CBN and threatened with sanctions if they continue to divert foreign exchange from the export proceeds. The exporters are expected to repatriate export proceeds to support the naira and boost the economy.
Analysts quoted in the statement said the CBN has the option to bar the exporters from the foreign exchange market and other banking services.
The Central Bank has been making frantic efforts to conserve scarce foreign exchange following the devastating impact of the coronavirus pandemic that cut oil prices which affected Nigeria’s forex earnings.