Chinwendu Obienyi
As part of its effort to increase foreign exchange liquidity in the country, the Central Bank of Nigeria (CBN) has directed all non-oil exporters to process dollar proceeds through domestic lenders.
This is even as the apex bank said that exporters who fail to remit dollar proceeds through the lenders will be denied access to official currency markets.
The statement signed by the Bank’s Director of Trade and Exchange, Dr. Ozoemena Nnaji, had also explained that the directive was aimed at ensuring prudent use of Nigeria’s foreign exchange resources and the elimination of incidences of over-invoicing, transfer pricing, double handling charges and avoidable costs that are ultimately passed to the average Nigerian consumer.
The CBN, had in the past, warned exporters conducting export activity against diverting foreign exchange from the export proceeds, instead of repatriating the same home.
But Daily Sun investigations reveal that exporters have cited the value of the currency on the official market, where the naira is trading at a discount of around 20 per cent to the black market, as a reason for hoarding dollars or bypassing banks to take advantage of black market rates due to the fact they sometimes conduct trade via offshore accounts.
Nigeria, which for months has sought to shore up its dwindling reserves, posted an economic contraction of 6.1 per cent in the second quarter and expects further contractions in the third and fourth quarters, the presidency said on Wednesday.
The news did further damage to transactional activities at the Nigerian Stock Exchange (NSE) as investors took profit in 19 stocks while 11 others appreciated in value. According to data obtained from the NSE’s website, the market’s All Share Index (ASI) which is a measurement to judge the overall direction of the market and the scope of its movements, fell by 0.10 per cent to close Thursday’s session at 25,304.25 points.