Foreign investors in Nigeria who are concerned that they may not be able to send their returns on investments in Nigeria back to their home countries, especially in the current coronavirus crisis have gotten an absolute guarantee from the Central Bank of Nigeria that they can safely do so from now on.
“The central bank put in place policies to ensure an orderly exit for those that be interested in doing so,” CBN Governor Godwin Emefiele was quoted as saying at the weekend adding that investors could get their money out of the country “notwithstanding the drop in the revenue from crude oil.”
Here Is What You Need To Know
- Although the Governor urged the investors to be patient “as such repatriations are processed, owing to the central bank’s policy of orderly exit of investments, ” he also noted that any foreign exchange available would be devoted to strategic importation or service obligations that are priority.
- Recalling a similar situation that occurred in 2015 over declining revenue, Emefiele said the CBN was able to settle all commitments in an orderly manner.
- According to the CBN Governor, COVID-19 has presented Nigeria with an opportunity “to reset the economy and as such there was need for the country to prepare itself to get the manufacturing sector to work, while the banking sector supports the economy.”
- With the drop in revenue from crude oil sale, the CBN Governor said Nigeria had no choice “but to diversify its economic base.”
“The time has come for Nigerians to produce what can be produced in the country and consume what is produced in the country,” he said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.