Global Times - Nigeria's central bank to fine banks over export proceeds

Nigeria's central bank to fine banks over export proceeds

Source: Xinhua
[12:41 July 27 2009]
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The Central Bank of Nigeria (CBN) is to impose a 25-percent fine on banks in the country that fail to repatriate export proceeds within the stipulated period of six months from the date of shipment, the Lagos-based Vanguard newspaper reported Friday.

Batari Musa, the apex bank's acting Director of Trade and Exchange Department, said in a statement issued to all authorized dealers on Thursday that the period for the repatriation of export proceeds of non-oil exports has now been reviewed.

The statement said proceeds of all non-oil exports must be fully repatriated within 180 days from the date of shipment, while the repatriation of proceeds of oil exports remains within 90 days from the date of shipment.

"For the avoidance of doubt, failure to repatriate the proceeds within the stipulated period shall render the bank liable to a financial fine of 25 percent of the Free on Board (FOB) value of the goods, as stipulated in the circular Ref: TED/AD/97/99 of Dec. 7, 1999 as well as other appropriate sanctions provided for in the BOFI Act of 1991 as amended," it added.

"Authorized dealers are enjoined to bring this notice to the attention of their customers and ensure compliance accordingly," the statement said.