Regulatory Alerts2015-02-20 | TED/FEM/FPC/GEN/01/006Clarification on the Provisions of Memorandum 26, Paragraph (5), Section (D) of the Foreign Exchange Manual
The Central Bank of Nigeria clarifies that holders of export proceeds domiciliary accounts have "unfettered access" to their funds, meaning they can use the proceeds for eligible and trade-related transactions or sell them to authorized dealers for eligible transactions only. Non-compliance will result in exporters being barred from the Nigerian foreign exchange market. This directive aims to ensure strict adherence to the Foreign Exchange Manual's provisions and maintain the integrity of the country's financial system.
CENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT 09 46237802 TRADE AND EXCHANGE DEPARTMENT E-mail address: ted@cbn.gov.ng TED/FEM/FPC/GEN/01/006 20 February 2015 TO: ALL AUTHORISED DEALERS and GENERAL PUBLIC CLARIFICATION ON THE PROVISIONS OF MEMORANDUM 26, PARAGRAPH (5), SECTION (D) OF THE FOREIGN EXCHANGE MANUAL RE: UNFETTERED ACCESS TO FUNDS IN EXPORT PROCEEDS DORMICILIARY ACCOUNTS Following different Interpretations of Memorandum 26, Paragraph (5), Section D of the Foreign Exchange Manual, It has become imperative to clarify the term "unfettered access" as contained in the provisions under reference.
For the avoidance of doubt, all authorized dealers and the general public are to note that henceforth, the term "unfettered access" granted to holders of export proceeds domiciliary accounts shall be strictly construed to mean that the proceeds of exports in the account can only be: l.
Used by the exporters to finance eligible and other trade related transactions supported with appropriate documentation Sold to authorized dealers (banks) for ellgible transactions only.
ll.
Any exporter that henceforth utilizes the export proceeds for non-eligible transactions will be barred from the foreign exchange market in Nigeria.
Hurar Bank OE MICE Please be guided accordingly and ensure strict compliance.
OLAKANMI I. GBADAMOSI DIRECTOR TRADE & EXCHANGE DEPARTMENT