…Says sanction on banks not punitive
Central Bank of Nigeria (CBN) has explained that the recent sanctions imposed on four Money Deposit Banks were in no way meant to deter foreign investors.
CBN said that it will continue to encourage the inflow of foreign investments into the country by ensuring that the repatriation of their profits would not be encumbered.CBN noted that some of its recent innovations and reforms of the Foreign Exchange regime such as the introduction of the NAFEX window were designed to simplify foreign exchange regulations.
It would be recalled that CBN had recently sanctioned four banks asking them to pay a total of N5.87 billion for breaching extant laws on foreign exchange.CBN also directed a telecommunication company to refund $8,134,312,397.63, illegally repatriated by the company to the coffers of the apex.
On the issue of delegation of the issuance of Certificates of Capital Importation (CCIs) to commercial and Merchant banks CBN explained that it was done to instill confidence in the investor community and encourage the flow of foreign direct and portfolio investments into the Nigerian economy. A statement signed by the CBN Director, Corporate Communications, Isaac Okorafor, said the recent sanctions on the banks arose due to irregularities with respect to repatriations made on behalf of MTN Nigeria Limited and were not in any way designed to restrict access to investor returns.
In response to the recent regulatory actions, the Banks and MTN he said are engaging the CBN and have provided additional information which is currently being reviewed with a view to arriving at an equitable resolution.”We assure all investors that the integrity of the CCI regime remains sacrosanct and there shall be no retroactive application of foreign exchange rules and regulations.“The CBN welcomes all legitimate investors to take advantage of the enormous investment opportunities in Nigeria,” the apex bank added.
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