CBN clears air on unfettered access to export proceeds

DigitalSENSE Business News:

The Central Bank of Nigeria (CBN) has made some clarification on the provisions of Memorandum 26, paragraph 5, section D of the foreign exchange manual, which dominantly centred on “Unfettered access to funds in Export proceeds domiciliary accounts, reports DigitalSENSE Business News.

A press statement made available to DigitalSENSE Business News by Olakanmi Gbadamosi, Director, Trade and Exchange Department, stated that following different interpretations of Memorandum 26, paragraph 5, Section D of the Foreign exchange Manual, it has become imperative to clarify the term “unfettered access” as contained in the provisions under reference.

For the avoidance of doubt, all authorized dealers and the general are to note that henceforth, the term “unfettered access” granted to holders of export proceeds domiciliary accounts shall be strictly construed to mean that the proceeds of exports in the account can only be defined in two distinct manners, namely as used by the exporters to finance eligible and other trade related transactions supported with appropriate documentation.

Also, Gbadamosi said that the second part of the interpretation entails to be sold to authorized dealers, which in this case is banks, for eligible transactions only.

Any exporter that henceforth utilizes the export proceeds for non-eligible transactions will be barred from the foreign exchange market in Nigeria.

@DigitalSENSE Business News @DigitalSENSEng +Remmy Nweke (ITRealms) 

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