The Association of Bureaux d Change Operators of Nigeria (ABCON) has advised the Central Bank of Nigeria (CBN) to establish a voluntary offshore asset repatriation window to allow more foreign capital inflows into the economy.
Its President, Ahaji (Dr) Aminu Gwadabe, who gave the charge in a statement yesterday, said the proposed policy plan would be a monetary instrument of the apex bank backed by an Act of the National Assembly for non-disclosure of the sources or basis of proceeds of the funds to be repatriated.
The ABCON boss canvassed tougher measures by fiscal and monetary policy makers to keep the forex market and economy going at this extraordinary time ignited by the COVID-19 pandemic.
He said the COVID-19 pandemic has led to drop in crude oil prices and drastic cut in Nigeria’s foreign exchange earnings.
According to him, the proposed window will boost liquidity in the Bureaux De Change (BDCs) sub-sector, Investors’ and Exporters’ (I&E) forex window and help the CBN sustain stability of the exchange rate.
According to him, the forex window, which differs from the previous Voluntary Offshore Asset Regularization Scheme backed by executive order 008 and tied to taxation, will be an incentive for owners of stashed funds abroad to be given an amnesty to repatriate their foreign cash holding into the window and to be traded at the prevailing rates in those windows.
Besides, owners of such funds should have one year amnesty to participate in the market and should be liable to pay a reduced corporate income tax of 20 per cent.
Gwadabe also advised that naira proceeds from the transactions in that window should be invested in the economy for a maximum of 10 years before it can be allowed to be repatriated back if the need arises.
According to him, the window will boost foreign exchange liquidity and stem the volatility in the market. It will also help in diversifying Nigeria’s foreign exchange earnings, support national planning, enhance backward integration and import substitution policies.