The Central Bank of Nigeria (CBN) has permitted banks to trade with foreign currencies deposited under the amnesty initiative for the foreign exchange (FX) deposit window.

CBN gave the directive in a document dated November 5, signed by John Sonojah, its acting director, financial policy and regulation department and Adetona Adedeji, its acting director, banking supervision department.

On October 31, the federal government launched the ‘Disclosure Scheme,’ an amnesty initiative for the foreign exchange deposit window.

According to the ministry of finance, the scheme would span nine months and is designed to enhance transparency in the financial sector and boost Nigeria’s economic resilience, growth, and development.

In the document, CBN provided guidelines for the participation of commercial, merchant, and non-interest banks (CMNIBs) in the implementation of the disclosure scheme that allows individuals or businesses to deposit foreign currencies.

The guidelines took effect on November 6.

According to the document titled ‘Guidelines on Implementation of the Foreign Currency Disclosure, Deposit, Repatriation and Investment Scheme, 2024,’ banks are at liberty to trade with the foreign exchange made available by the scheme participants.

“Commercial, merchant, and non-interest banks may trade with any deposited ITFC (Internationally Tradable Foreign Currencies) not immediately invested by a participant, provided that the funds would be made available to the participant when needed,” the document reads.

“Interest payment by CMNIBs on the balance in the designated domiciliary account shall be in line with relevant provisions of the Guide to Charges by Banks and Other Financial Institutions in Nigeria.”

RESPONSIBILITIES OF CMNIBS

CBN highlighted that banks are to open domiciliary accounts designated for the scheme for intending participants and receive and process applications from intending participants in the scheme in accordance with the scheme guidelines.

The banks are also to accept deposits of disclosed internationally tradable foreign currencies (ITFCs) from participants, either directly or from a legal person nominated by the participant.

CBN said other responsibilities include ensuring that ITFCs deposited by a participant are held in the designated domiciliary account and not later than 24 hours from the time the ITFC is deposited, issuing a receipt to the participant, indicating the originating country of the funds, and acknowledge that such funds were received for the scheme.

“Track and report to the Bank, participants’ ITFC investments in permissible investment instruments or permissible investment sectors; ensure that participants comply with the provisions of this guidelines, the principal executive order, scheme guidelines, and other applicable laws relating to the Scheme,” the CBN said.

“Treat with confidentiality, all information received from participants in the Scheme in line with the Nigerian data protection laws and regulations; render returns to the Bank in accordance with section 5.0 of this Guidelines; obtain from the intending participants the information listed in Section 3.1 of this Guidelines. 

“Maintain appropriate and comprehensive records of data/information relating to transactions under the Scheme; and perform such other functions as the Bank may direct.”

WITHDRAWAL AT WILL AND CONVERSION AT PREVAILING RATE

According to the CBN, the CMNIBs are not to impose any restriction on the withdrawal from the designated domiciliary account of the participant (individual or business) — except as otherwise provided in the scheme guidelines.

The CMNIBS are also not to restrict the termination of any investment made by the participant in a permissible investment instrument or permissible investment sector with any such ITFC.

Also, the banks are to permit a participant to, at any time, exchange part or the whole ITFC in their designated domiciliary account for naira at the prevailing exchange rate, provided that such conversions are properly disclosed and reported in the CMNIB’s foreign exchange returns.

In implementing the scheme, CBN added that CMNIBs are required to comply with extant rules and regulations, including anti-money laundering/combating the financing of terrorism/countering proliferation financing (AML/CFT/CPF) laws and regulations.

Dangote Petroleum Refinery and Petrochemicals has advised Pinnacle Oil and Gas Limited that deregulation should not be used as a justification for the importation of off-spec petroleum products or the undermining of Nigeria’s national interests.

The refinery made this statement in response to remarks by Robert Dickerman, CEO of Pinnacle Oil and Gas Limited, concerning the importation and blending of petroleum products, which he framed within the context of a "deregulated commodity market." Dangote Petroleum Refinery said that his argument for a deregulated market could not obscure the serious implications of his actions, which, it claimed, not only threatened the integrity of Nigeria’s energy sector but also endangered the welfare of its citizens.

While reiterating its support for deregulation and industrialisation, Dangote emphasised that this support is grounded in a commitment to the sustainable growth of the country’s economy and the protection of its people from exploitation. The refinery made it clear that the health and safety of Nigerians should never be compromised in the pursuit of profit.

“The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country's economy and the protection of its people from any exploitation. Unlike Dickerman’s view, deregulation should not be a licence for the importation and distribution of off-spec products or the subversion of national interests,” it said.

The company also noted that, as an American, Dickerman should be well aware of how his own country protects its industries. It pointed to several recent examples from the United States to underline the point. For instance, U.S. President Joe Biden recently opposed the sale of U.S. Steel to Japan’s Nippon Steel, stressing the importance of maintaining strong American steel companies supported by American workers—an example of protectionism that prioritises national economic interests over short-term profit. Similarly, the U.S. has taken action to restrict the use of Chinese-made cranes in its ports, citing national security concerns. The U.S. has also imposed a 100% tariff on electric vehicles and a 50% duty on medical equipment imported from China, further demonstrating its commitment to safeguarding domestic industries. The United States has also ramped up efforts to boost its own production of computer chips and medical supplies, driven by national security concerns and the need for economic self-sufficiency. Furthermore, during his presidency, George W. Bush used anti-dumping laws to impose tariffs on a range of Chinese goods that were considered to be unfairly priced.

“It is therefore perplexing that Dickerman, with all his experience in the U.S. market, would advocate for the importation and blending of petroleum products to Nigeria under the claim of deregulation and a free market. The fact is that he had deceitfully approached us and pleaded that we extend the pipeline from our refinery to Pinnacle’s tank farms for the purpose of blending our high-quality products with their imported products and selling them to Nigerians. We categorically rejected his request to extend our pipeline to their tank farms for such devious purposes because it would be a betrayal of the Nigerian people’s trust. The health and safety of Nigerians cannot—and should not—be compromised for profit.”

The company also raised concerns over Pinnacle Oil’s decision to lease its tank farms to a company without any retail outlets in Nigeria, questioning the strategic intent behind such actions, particularly given that the farms are located just 500 metres from Dangote’s refinery. It expressed its vigilance regarding the coordinated efforts to undermine the Dangote Refinery, drawing parallels to the fate of refineries in Port Harcourt, Kaduna, and Warri.

Dangote Petroleum Refinery called on the government, patriotic Nigerians, and local businesses to remain steadfast in defending the country’s sovereignty and economic independence.

“The choice we face is between fostering industrialisation or allowing Nigeria to remain a dumping ground for inferior products while exporting jobs. For nearly three decades, cartels and their collaborators have sabotaged efforts to develop Nigeria’s refining capacity, keeping the country dependent on imported products. The time has come to end this cycle of exploitation and ensure that Nigeria’s energy sector works for the benefit of its people,” it added.

Reiterating its belief that a strong, self-sufficient energy sector is vital for Nigeria’s economic growth, Dangote affirmed that it will continue to advocate for policies and practices that protect both industries and the well-being of all Nigerians.

The company also expressed its support for healthy competition that drives innovation and quality, and looked forward to the upcoming commissioning of the four state-owned refineries, as promised by the NNPCL.

“At Dangote Petroleum Refinery, we are committed to ensuring that Nigeria becomes self-reliant in petroleum production, and we welcome competition that drives innovation and quality. However, we will never allow the continued importation and blending of petroleum products, nor the deliberate destruction of our national economy. We believe that a strong, self-sufficient energy sector is vital to Nigeria’s economic growth, and we will continue to advocate for policies and practices that protect our industries and the well-being of all Nigerians.”

“We eagerly anticipate the coming on stream of the Kaduna, Warri, and Port Harcourt refineries before the end of this year, as promised by the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari. This milestone will not only end all baseless rumours of monopoly but also position Nigeria as a refining hub for petroleum products in Africa,” it concluded.

• Commiserates with Tinubu, Nigerian Army, South-West

 Lagos State Governor and the Chairman of the South-West Governors Forum, Mr. Babajide Sanwo-Olu, has mourned the passing of Nigeria’s Chief of Army Staff, Lt. General Taoreed Abiodun Lagbaja, describing his death as a colossal loss to Nigeria.

The Governor also commiserated with the Commander-in-Chief of the Armed Forces, President Bola Tinubu, Security Chiefs, the Nigerian Army and the entire Nigerians over the death of the Chief of Army Staff.  

Governor Sanwo-Olu, in a statement issued on Wednesday by his Special Adviser on Media and Publicity, Mr. Gboyega Akosile, described Lagbaja, who died on Tuesday night in Lagos following a brief illness at the age of 56, as a dutiful and committed soldier who served Nigeria passionately.

The Chairman of the South-West Governors Forum, who also sympathised with the immediate family, friends and associates of the late 23rd Chief of Army Staff.

The Governor praised the late Lt. General Lagbaja’s contributions in Nigeria’s efforts to end the war against insurgency and banditry, noting that the country would miss the rich experience and knowledge of the deceased soldier.

He said, “On behalf of my family, the people, and the government of Lagos State, I extend my heartfelt condolences to President Bola Tinubu and the Nigerian Army on the death of the 23rd Chief of Army Staff, Lt. General Taoreed Lagbaja. I also sympathise with families, friends, and associates of the deceased.

“I am saddened by the death of Lt. General Taoreed Lagbaja. His death was a painful loss to Nigeria. He was a dutiful and committed soldier who served Nigeria passionately with dedication, skill, gallantry, and total commitment. He employed his long years of experience and expertise in the service of our fatherland.

“The late Lt. General Taoreed Lagbaja will be sorely missed by the Nigerian Army, especially at this period when the country is intensifying the fight against insurgency and other criminal elements in different parts of the country.

“I pray that God would grant Lt. General Taoreed Lagbaja eternal rest and grant the Nigerian army and the entire security chiefs, as well as the families, associates, and colleagues of the deceased, the fortitude to bear the irreplaceable losses.

SIGNED

GBOYEGA AKOSILE

SPECIAL ADVISER - MEDIA AND PUBLICITY

06 NOVEMBER 2024