Regulatory Alerts2009-03-06 | TED-FEM-FPC-GEN-01-034-09Modalities for Sale of Foreign Exchange by Oil and Oil Services Companies, NNPC and other Governement Agencies.
The Central Bank of Nigeria (CBN) has provided guidelines for oil and oil services companies, NNPC, and other government agencies to sell foreign exchange to the CBN. They are required to offer the amount they wish to sell in specific currencies including US dollars, Euros, British Pounds Sterling, Japanese Yen, or Swiss Francs. The CBN will purchase at no more than 1% below its immediate past selling rate on the Retail Dutch Auction System (RDAS). All transactions will be evidenced by exchange of contract papers and completed within two business days. A penalty of FED Funds rate plus 2% per day will apply for late delivery. Customers must deliver the purchased foreign currency to the CBN or their bank accounts will be credited with the Naira equivalent. Any inquiries can be directed to specific staff members from the Trade and Exchange Department at the CBN."