Regulatory Alerts2007-03-05 | TED-FEM-GEN-FPC-01-027-07Revalidation of Expired Bill for Collection Transactions
The Central Bank of Nigeria has issued a directive to authorised dealers, stating that all bills for collection transactions must be negotiated within a 180-day validity period from the Bill of Lading date. If bills cannot be settled within this timeframe, a ninety-day extension is allowed, effective from the expiry date of the initial tenor. Any further extensions beyond that require approval by the Director, Trade and Exchange Department. Authorised dealers must ensure compliance with these provisions.
09 616 37 802 Central Bank of Nigeria Central Business District P.M.B. 0187 Garki, Abuja 09 616 37 804 E-mail: ted@cenbank.org
Our Ref: TED/FEM/GEN/FPC/01/025 February 23, 2007 TO: ALL AUTHORISED DEALERS REVALIDATION OF EXPIRED BILL FOR COLLECTION TRANSACTIONS In furtherance to the liberalization effort of the Central Bank of Nigeria, coupled with the need to facilitate trade, Authorised Dealers are hereby advised as follows: (a) all bills for collection transactions should be negotiated within the validity period of one hundred and eighty (180) days from the Bill of Lading date; (b) where the bill cannot be settled within the validity period of the 180 days, Authorised Dealers are allowed to extend the tenor of such bills by ninety (90) days effective from the expiry date of the initial tenor; and, (c ) any further extension of the bill after the expiry of the extension by Authorised Dealers shall be subject to the approval of the Director, Trade and Exchange Department, CBN, Abuja.
All Authorised Dealers are enjoined to ensure compliance with the provisions of this circular. O. O. AKANJI (MRS) DIRECTOR TRADE & EXCHANGE DEPARTMENT