The Central Bank of Nigeria has confirmed that proceeds of sales and income from securities can be used for reinvestment purposes within certain administrative guidelines in terms of the Certification of Capital Importation.
Clients are no longer required to repatriate proceeds of sales and income should they have intentions of reinvesting such proceeds. Clients need to submit bond instructions in accordance with the revised timelines. Where necessary Service Level Agreements in place need to be amended to reflect the revised timelines.
Over the past few months Stanbic Bank Nigeria has actively pursued the Central Bank of Nigeria to obtain clarity and confirmation on the exchange control and corresponding Certificate of Capital Importation (CCI) implications in utilising proceeds from sales and income for reinvestment purposes.
“We have received confirmation from the Central Bank of Nigeria through the acceptance of minutes from the last meeting held with Stanbic Bank Nigeria, that the proceeds from sales of securities and income (coupon and dividend income relating to securities) can be used for reinvestment in other securities in the Nigerian market and that there is no need to repatriate such proceeds and subsequently inflowing funds into Nigeria for the purpose of reinvestment,” says a spokesman for The Central Bank Of Nigeria.