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2009-03-06 | TED-FEM-FPC-GEN-01-034-09

Modalities 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."

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Nigeria

Central Bank of Nigeria

Central Bank of Nigeria Central Business District P.M.B. 0187 Garki, Abuja 09-61637811 09-61637809 E-mail: ted@cenbank.org

TED/FEM/FPC/GEN/01/032/09 March 6, 2009 TO: ALL AUTHORISED DEALERS OIL AND OIL SERVICES COMPANIES AND OTHER GOVERNMENT AGENCIES MODALITIES FOR SALE OF FOREIGN EXCHANGE BY OIL AND OIL SERVICES COMPANIES, NNPC AND OTHER GOVERNMENT AGENCIES Further to the circular Ref: TED/FEM/FPC/GEN/01/024 dated February 25, 2009 on the above subject, the following procedure should be noted for compliance:

  1. Oil and Oil Services Companies and other Government Agencies shall make an offer indicating the amount of the foreign currency to be sold to the Director, Trade & Exchange Department (TED), CBN, Abuja.

  2. The foreign currencies that could be offered for sale to the CBN are the US dollar, Euro, British Pound Sterling, Yen and the Swiss Franc.

  3. The CBN shall purchase each of the foreign currencies at no more than one per cent (1%) below its immediate past selling rate at the Retail Dutch Auction System (RDAS).

  4. All transactions shall be evidenced with exchange of contract papers between the parties confirming the foreign exchange deal, indicating the amount of trading currency involved, the naira equivalent as well as the value date (T+2).

  5. Any company or agency could reach the Director, TED through their banks if this is considered expedient.

CBN to an account to be advised in the letter of contract stated in (4) above while the CBN shall credit the customers' bank current account with Naira equivalent of the foreign currency purchased.

  1. The CBN will charge a penalty of FED Funds rate plus two percent (2%) on the US$ amount or its equivalent in other currencies for every day the amount purchased remains undelivered after the due delivery date.

  2. The responsibilities and obligations of the counter party and the CBN to the transaction are subject to applicable foreign exchange laws and regulations in Nigeria.

  3. For foreign exchange dealing operations and further inquiries, the following staff of the Trade and Exchange Department could be contacted.

2

  1. The customer shall ensure delivery of the foreign currency sold to the
S/No.NameMobileDirect LinesE-mail
Telephonehasalako@cenbank.org
1H. A. Salako0805550166709-46237806 Fax No. 09-46237818zaokorocha@cenbank.org
2.Z. A. Okorocha0803311915109-46237836 Fax No. 09-46237841
3.L. Y. Mustapha0803302113909-46237838lymustapha@cenbank.org
4.G. I. Ezeh0805395928109-46237838giezeh@cenbank.org ooewhe@cenbank.org
5.O. O. Ewhe0803311555009-46237870 Fax No. 09-46237872

Batari Musa Ag. Director, Trade and Exchange Department

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