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Nigeria Reforms Capital Importation To Attract Foreign Investors | The Precision

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CBN Tower, Abuja
The Central Bank of Nigeria (CBN) on Monday commenced issuing
electronic certificates for capital imported into the country, in a bid
to improve its currency transfer process, it said. 

The
new certificate will replace a hard copy now issued when capital is
imported, according to a circular from the central bank. The bank said
the move would enhance transparency and efficient processing of foreign
investment. 
Investors or companies are required
by a 1995 law to get certificates within 24 hours declaring they have
invested foreign currency in Nigeria. They must have the certificates to
repatriate returns on those investments. 
Under the old rule, investors struggled to meet the one-day deadline to get the certificates, bankers say. 
Nigeria
grew out of recession in the second quarter as oil revenues rose, but
the pace of growth was slow, suggesting a fragile recovery. 
Foreign
investors fled the country when oil prices dropped three years ago.
They have started to return, thanks to improved transparency on exchange
rates, and the apex bank is trying to attract more investment. 
Nigeria’s national assembly last September agreed to investigate whether
Africa’s biggest telecoms company, MTN, unlawfully repatriated $13.92
billion between 2006 and 2016, because it did not obtain certificates
declaring it had invested foreign currency within the deadline. 
MTN has denied any wrong doing, saying that it did not break Nigeria’s currency-transfer rules. 
 
Source: Reuters
 

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