Nigeria plans to give the central bank more power to control capital flows and prevent foreign-exchange being taken out the country, including jail times and fines for offenders as authorities battle against a shortage of dollars.

Authorities should be able to jail for as long as two years anybody holding dollars in cash for more than 30 days, or fine them 20 percent of the amount, according to a draft amendment to Nigeria’s Foreign-Exchange Act.

The proposals were published on the website of the Nigerian Law Reform Commission, which reviews legislation, this week. Regulators should also be able to prevent money being repatriated “in accordance with the terms and conditions as may be prescribed by the central bank from time to time,” the draft said.

The existing law is “narrow in scope” and “prohibits the seizure, forfeiture or expropriation of imported money by the government without providing for exceptions,” according to the document. The amendments are necessary “for effective monitoring and control, and to ensure probity in foreign-exchange transactions in Nigeria.”

Nigeria has increased capital controls since oil prices started crashing in the second half of 2014, reducing government revenue and export earnings.

Central Bank of Nigeria Governor Godwin Emefiele pegged the naira for 15 months until June this year, a move analysts blamed for causing investors to flee the country, the economy to contract in the first half of the year and the inflation rate to rise to an 11-year high.

The latest move will further worry foreign investors, according to Lagos-based SBM Intelligence. Last week, the intelligence service threatened to arrest black-market money-traders if they exchanged the naira at a rate weaker than 400 per dollar, compared with the existing street-rate of around 460. The currency’s official exchange rate, which analysts say the central bank is still manipulating, is 315 against the greenback.

“The CBN wants to take its regulatory onus to frightening proportions,” analysts at SBM said in an e-mailed note Friday in response to the new draft law. “The move smacks of desperation and can only result in negative investor perception and capital flight.”

The central bank’s spokesman, Isaac Okorafor, didn’t answer calls to his mobile phone or immediately respond to a text message seeking comment.

http://investorsking.com/nigeria-proposes-jail-time-fines-as-it-tries-to-bolster-naira-bloomberg/

ok

Wailers tell your Oga dem ooo

If you like shout rule of law


You forget rule of law wet you break the law ?

THIS ADMINISTRATION NOW USES FORCE INSTEAD OF SOUND ECONOMIC POLICIES...

DEAR NIGERIANS, WELCOME BACK TO THE MILLITARY ERA.

Draconian laws. once a dictator always a dictator. You can't defeat market forces

Good one. Is it enforceable in this high class corrupt country?

@Truth234: I have mixed feelings about this move.

They should "kuku" ban the parallel market and allow the interbank market to be fully driven by the forces of demand and supply. Too many flip-flops.

My layman's opinion...

“The CBN wants to take its regulatory onus to frightening proportions,” analysts at SBM said in an e-mailed note Friday in response to the new draft law. “The move smacks of desperation and can only result in negative investor perception and capital flight.”

@Adesiji77 According to a CBN report, about $20 billion is sitting idle in various domiciliary accounts. This is almost $23 billion of the entire foreign reserve of the nation, the problem is, as long as you have such amount sitting idle, the Naira will continue to struggle while the parallel market thrive due to the gap in foreign exchange rates.

So, the CBN is struggling to get an autonomy to effect changes to individual/company holding of dollars, including repatriation. It is all to control activities of saboteurs and further inject liquidity into the market.

Though, there are certain things to be removed from their demands, but this move seems necessary if we really want to curtail the illiquidity issue.

Trial and error economy...

K

Godwin Emefiele can do better than this , pretty sure some ministers are frustrating things for him e.g kemi

Nigeria again!

F

Good

Dumbest move. Buhari is a fool

Become a World mathematician! A cyclist cycles for x hours at 12km/hour and y hours at 18km/hour. Altogether she cycles 78km in 5hours. Find x and y

It's the wrong move.

We know there is money in the economy Politicians are just scared to spend since they know the funds were gotten illegally.

You can't for them to spend the dollars.

The govt shld intensify its war or corruption, let there be indictments. The problem is our Judges have been stained so it's even hard to believe in this country's law enforcement.

I think it's time for us to borrow a line from Donald Trump (drain the swamp) the whole system is corrupt and those in government are just being recycled. It's time we have successful business men come into politics as well.

Pkay

If this would stable the naira, it's a welcome idea but all talks no action, do it first lets see before coming to media

Sighs

Truth234:
@Adesiji77 According to a CBN report, about $20 billion is sitting idle in various domiciliary accounts. This is almost $23 billion of the entire foreign reserve of the nation, the problem is, as long as you have such amount sitting idle, the Naira will continue to struggle while the parallel market thrive due to the gap in foreign exchange rates.
So, the CBN is struggling to get an autonomy to effect changes to individual/company holding of dollars, including repatriation. It is all to control activities of saboteurs and further inject liquidity into the market.
Though, there are certain things to be removed from their demands, but this move seems necessary if we really want to curtail the illiquidity issue.

Is there any crime in saving your money in dollars? I worked for my money and so I should decide in what currency I should save it in . Why all these bad Belle sef? Should we all save our money in failed naira?

sarrki:
Wailers tell your Oga dem ooo

If you like shout rule of law


You forget rule of law wet you break the law ?

Don't be a fool
Your zombie ogas no be Mega Thieves?

Using force to stabilise the naira. One can only but wonder why there are so many economists in the havard university lol when you can just use gun to control the economy..honestly i dey shame shame for Nigeria. FLOAT the god-forsaking naira for chrissake and stop being silly over a simple logic of supply and demand!!!

K

hmmm

sarrki:
Wailers tell your Oga dem ooo
If you like shout rule of law

You forget rule of law wet you break the law ?

I don't want to believe you are an offspring of someone's sperm.

With these law, they can kiss FDIs goodbye.

By the way, that money don't belong to the government, people should have the right to spend their money the way they like.

I comment my reserve.

l

2 wrongs cannot make a right