By our reporter| A day after it banned third parties from getting forex using Form M, the Central Bank of Nigeria (CBN) on Tuesday directed banks to submit the names, addresses and bank verification numbers (BVN) of exporters that have defaulted in repatriating their exports proceeds, for further action.
The director of CBN trade and exchange department, Ozoemena Nnaji, in a statement on Tuesday said the directive is to ensure prudent use of the country’s foreign exchange resources, adding that the apec bank governor, Godwin Emefiele, issued the directive at the bi-monthly virtual meeting of the bankers’ committee.
The statement read, “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 further stated Nnaji the directive will eliminate incidences of over-invoicing, transfer pricing, double handling charges and avoidable costs that are ultimately passed to the average Nigerian consumer.
The CBN, together with the bankers’ committee, has in the past threatened to sanction sanctions exporters who divert foreign exchange from the export proceeds, instead of repatriating such to support the naira and boost the economy.
The statement also quoted analysts as saying a number of punitive options are open to the CBN, “including, but not limited to, barring the exporters from the foreign exchange market and other banking services”.
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