The Central Bank of Nigeria (CBN) has directed banks to submit the names, addresses and Bank Verification Numbers (BVN) of exporters that have defaulted in repatriating their export proceeds.
The Governor, Godwin Emefiele, issued the order during the bi-monthly virtual meeting of the Bankers’ Committee on Tuesday. CBN is seeking to increase foreign exchange liquidity.
The directive followed Monday’s announcement of the abolition of third-party “Form M” payment.
Director of Trade and Exchange, Dr Ozoemena Nnaji, in a circular, said it would ensure prudent use of Nigeria’s foreign exchange resources and the elimination of incidences of over-invoicing.
It will also address transfer pricing, double handling charges and avoidable costs that are ultimately passed to the average Nigerian consumer.
The bank’s move will tackle over-invoicing, which some businesses used to divert foreign exchange, through the opening of “Forms M” for which payment were routed through a buying company, agent, or other third parties.
The CBN, in its explanation, referred to its Foreign Exchange Manual which provided that all exporters should repatriate export proceeds to Nigeria to support the local currency and boost the economy.