Amaka Obiefuna

In order to make business smoother, the Central Bank of Nigeria (CBN) has opened a special Forex window for Nigeria’s Small and Medium Enterprises (SMEs) to enable them import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter.

This was revealed on Monday, April 10, 2017 by the CBN spokesman, Isaac Okorafor. He explained that the Bank’s special intervention was necessitated by its findings that a large number of SMEs were being crowded out of the forex space by large firms.

Mr. Okorafor said “The sum of $20,000 per SME customer per quarter can be effected by telegraphic transfer subject to completion of Form ‘M’ supported with proforma Invoice and the importer’s Bank Verification Number (BVN)”

He further explained that all processing banks are to ensure that the importers submit relevant shipping documents not later than 60 days from the date of the transfer.

Information posted on the CBN website defines Small and Medium Scale Enterprises are enterprises that have asset base (excluding land) of between N5 million and N500 million and a labour force of between 11 and 300.

Okorafor further disclosed that the Bank had begun the massive sale of foreign exchange in different sectors of the Forex market this week. On Monday, April 10, 2017, the Bank intervened by offering the sum of $100 million to authorized dealers at the forex auction in the interbank wholesale window. It also sold $41 million for BTA, PTA, medical and tuition fees. On the BDC segment, the Bank also sold $10,000 each to BDCs to meet the needs of low-end users in the country.

He said that the dealers in the wholesale segment will have value for their respective bids on Tuesday, April 11, 2017; the sum of $99,544,417.45 was picked up by dealers out of the $100 million offered by the Bank during the last wholesale auction on April 6, 2017.

In another development, operators in the Bureau De Change (BDC) segment have duly funded their accounts with the CBN in anticipation of picking up the dollar equivalent ($10,000) on Tuesday, April 11, 2017.