Shipping Lines to Face Account Restrictions for Illegal Exports, Warns CBN

Nigeria’s Central Bank has warned that shipping lines and agents who connive with exporters to take products out of the country without proper documentation will face restrictions on their accounts.

This warning was issued by the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, at the third edition of the RT200 bi-annual Export Summit in Lagos.

Emefiele stated that the apex bank has been patient with shipping lines as well as agents which it expects to do the right thing. However, he noted that the bank will take action against those who do not comply with the rules. Emefiele emphasized that the bank would place Post No Debit on the accounts of shipping lines and agents that are found to be conniving with exporters to take products out of the country without proper documentation.

The CBN Governor also spoke about the progress of the RT200 programme, which was established in February 2022 to boost Nigeria’s non-oil exports. According to Emefiele, the programme has made good progress in export proceed repatriation. He noted that $1.7 billion had been repatriated into the Nigerian economy in the first three months of 2023, with about $790 million sold at the I&E window year-to-date.

Emefiele also said that repatriation due to the programme had increased by 40% from $3.0 billion in 2021 to $5.6 billion at the end of 2022. The momentum for 2023 is showing strong numbers and impressive prospects, he added.

The CBN Governor further addressed concerns about transparency in the distribution of the RT200 programme benefits. Responding to questions from the audience, Emefiele assured the public that the names of companies and individuals that benefited from the RT200 export rebate programme would be published. He stated that the bank would begin to advertise publicly the amount and the names of the companies that have benefited from the RT200.

The CBN Governor also urged exporters to take advantage of the many financial programmes introduced by the CBN through their banks, to grow their businesses exponentially. He reiterated the bank’s commitment to strengthening and expanding foreign exchange supply into the market.

The warning to shipping lines and agents underscores the commitment of Nigeria’s Central Bank to curb illegal exports and promote transparency in the RT200 programme. The bank’s efforts to boost Nigeria’s non-oil exports are also commendable, as they have resulted in a significant increase in export proceed repatriation.