Alexander Davis | ConsumerConnect

As part of measures aimed at defending the country’s currency with tougher regulations, the Central Bank of Nigeria (CBN) has said local exporters that have not repatriated export proceeds will be barred from all banking services from January 31, 2021.

Osita Nwanisobi, Spokesman of the CBN, via a text message Saturday, January 23 stated the fresh directive applies to exports up until June 2020, Bloomberg report said.

He said: “Proceeds for oil are to be repatriated within 90 days and non-oil within 180 days.”

Nwanisobi disclosed the measures are part of an effort to defend the country’s currency by targeting importers and exporters with tougher regulations.

Report indicates the development is sequel to a plunge in oil prices and the Coronavirus pandemic that led to Dollar shortages in Africa’s largest crude producer, resulting in a difference between the official foreign exchange (Forex) rate and that of the parallel market.

The differential of about 25 percent has created an incentive for exporters to divert Forex income to unofficial channels.

The Bankers’ Bank was said to have ordered exporters to register with it through an online portal to ensure the repatriation of proceeds last year.

Meanwhile, country’s banking regulator has also ordered banks to report exporters that fail to repatriate income earned abroad, report said.