MARCH 16, 2015
Bank customers use payment cards to bypass forex laws By BABAJIDE KOMOLAFE
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ank customers have resorted to using electronic payment cards such as MasterCard and Visa card to circumvent foreign exchange regulations. Banks can issue Naira or Dollar denominated debit or credit cards to customers and such cards could be linked to the current or savings account of the customer with the bank. The purpose of these cards is to allow the customers spend from their Naira account whenever they travel abroad. The Central Bank of Nigeria (CBN) however, stipulates a maximum limit of $150,000 per year for each card holder. Financial Vanguard investigations, however, revealed that bank customers are now using multiple accounts either in the same bank or in different banks to circumvent this limit. Investigations reveal that bank customers now obtain a naira MasterCard or Visa card linked to different accounts so as to be able to access dollars above the $150,000 limit. Further investigations also revealed that banks are not only aware of this practice but encourage it. A top foreign exchange dealer who spoke to Financial Vanguard on condition of anonymity said the banks encourage it because it enables them make more money through the charges deducted when customers use such cards for dollar-denominated transactions or withdraw dollars while outside the country. The dealer also told Financial Vanguard that the practice is prevalent among banks in the country. Though the CBN Director of Corporate Communications, Ibrahim Mu'azu did not respond to enquiries on the response of the apex bank to this malpractice, a top management staff of the bank, however, confirmed C M Y K
CLOSING - President Goodluck Jonathan closing market at the Nigerian Stock Exchange (NSE), flanked by Minister of State for Finance, Bashir Yuguda; NSE Chairman, Mr. Aigboje Aig-Imoukhuede (r); Chief Executive Officer, NSE, Pascal Onyema (l) and; Minister of Trade & Investment, Mr. Olusegun Aganga, at the NSE trading floor. to Vanguard that the apex bank was indeed aware of this malpractice. Speaking under condition of strict anonymity, he said: “We are aware of
it and I can tell you it is a breach of regulation. But we are not doing anything about it for now because of the challenge of
tracing individuals with multiple bank accounts in the industry. But I can Continues on page 22
How Nigeria lost 10m tonnes of transit cargo By GODWIN ORITSE
A
S Nigeria makes move to reclaim over 10 million metric tonnes of lost transit cargoes, the factors that initially led to the loss of this category of the country’s trade to neighbouring countries are still very much present in the Nigerian ports. The 10 million metric tonnes of transit cargoes are from Niger alone and have been distributed amongst four neighbouring countries namely: Ghana, Togo, Republic of Benin, and Ivory Coast.
The issue of port has also been given as the major factor militating against the return of these cargoes to Nigerian ports. In an exclusive interview with Vanguard, the country representative of the Niger Council of Public Transport Users, NCPTU, Alhaji Idi Homissou told Vanguard that high duty rate and other associated port costs actually drove Nigerien importers to port of neighbouring countries. Homissou said that while 4.3 million metric tonnes of the 10 million metric tonnes of transit cargo has Continues on page 23