CBN Plans Four-Year Petroleum Imports Audit

The Central Bank of Nigeria (CBN) is planning a four-year petroleum import review in the country. Analysts predict that the planned audit would assist the apex bank to check the movement of foreign exchange in the importation of petroleum products strategy during the period under consideration.

The apex bank has, therefore, designed a aimed at collecting data from importers of petroleum products carried out from 2008 to date. The banking watchdog expects all information to be submitted to the Director, Trade and Exchange Department, Musa Batari, latest by close of work today.

In a circular, Batari urged authorised dealers to comply with the directive, failing which appropriate sanction would be imposed. Details to be supplied to the apex bank, he said, include Form ‘M’ number, Form ‘M’ registration date, importer’s name and address, sources of funds, date of Department of Petroleum Resources (DPR) permit, country of supply and discharge depot, among others.

Analysts attribute the current move of the apex bank to it’s commitment to check the use of foreign exchange, especially for imports in the country.

Few days ago, the CBN said it would restrict the sale of dollars at its auctions to foreign companies taking the currency offshore, in a further measure to limit local foreign exchange demand and support the weakening naira.

The regulator, said foreign investors were guaranteed to repatriate their earnings and proceeds of investments offshore, but they could only seek dollars for such purposes from the open market.

“All remittances in respect of dividends, capital and proceeds of investments shall be through the use of autonomous funds (interbank). For the avoidance of doubts, foreign investors are guaranteed repatriation of their earnings and or proceeds of investments through the use of autonomous funds,” Batari said in the circular.

The CBN has in its continued effort to consolidate on the policy measures taken on foreign exchange utilisation, coupled with the need to streamline petroleum products importers, authorised dealers to forward copies of the Form ‘M’ proceeds and other relevant documents to the CBN for consideration.

Also going forward, requests for purchase of foreign exchange will be made within 48 hours to the bidding or auction day, failing, which the bid will be considered for the next auction session.

The apex bank said after negotiation of the transaction, and within 30 days of arrival of the cargo, authorised dealers shall provide the final shipping documents, including product certification report issued by the DPR among other measures to the apex bank.

A source from the Petroleum Products Pricing Regulatory Agency (PPPRA) said between January and August, this year, the agency has imported petrol worth N560 billion. In 2010, the four refineries, with a combined capacity in excess 445,000 barrels per day, could only refine a mere 80,757 metric tonnes of petroleum products.