NEC calls for public enlightenment on movement of foreign currencies across Nigerian borders

There is need for sensitization and public enlightenment to create awareness on the relevant laws, regulations and policies that govern the movement of money across the nation borders.

This was one of the decisions reached earlier today at the 2015 National Economic Council, (NEC) meeting presided over by the Vice President, Prof. Yemi Osinbajo, SAN.

Specifically, the Council directed the CBN to embark on sensitization and public enlightenment on the Forex Policy, relevant laws and regulations as necessary guide to traders, some of who are encountering challenges regarding the movement of foreign exchange across Nigeria borders, especially through some of the local airports. While sympathizing with the traders, Council decided that awareness on the relevant laws should be creative.

Other deliberations of the Council include the following:

A.    Nigeria Sovereign Investment Authority:

Council received status update and presentation of 2014 Annual Report as the Governing Council on Nigeria Sovereign Investment Authority (NSIA). It was presented by the Managing Director of the (NSIA). Council then resolved that 250million USD from the $400million LNG dividend be invested in the NSIA.

Council also directed the Hon. Minister of Finance to constitute an Executive Nomination Committee and work in consultation with NEC to find appropriate persons to take over as board members of the NSIA when the current board is dissolved.

Council resolved that USD 150 million balance of the $400m LNG fund be shared among the States.

B. Excess Crude Proceeds:

Accountant General of the Federation (AGF) reported that the balance of the ECA stood at USD 2.257 billion and that not much has changed from the last report.

Update on the Report on FGN Agencies Revenue collection in Foreign currencies but remitting Naira equivalent into the Federation Account:

The Council mandated the Ministry of Finance to investigate and report on the allegation that some revenue generating MDAs received money in foreign currencies and converted to local currencies before remitting into the FGN Account.

C.  Briefing by the DG, PENCOM:

The DG, Pension Commission briefed the Council on the Contributory Pension Scheme and the status of implementation by States.

Highlights of the briefing was on the sustainability of the pension arrangement, scorecard of the States in the implementation of the Contributory Pension Scheme (CPS), the challenges, opportunities and also the steps towards full implementation by the States.

The briefing also highlighted the need for States to provide legal framework such as; enactment of State pension laws, establishment of State pension agencies, consistent remittance of both the employee and employer contributions and also full compliance of all the provisions of the pension scheme.

D.   Workshop on Treasury Single Account (TSA) for the State Governors:

IMF Senior Resident Representative and Mission Chief presented a paper on the Treasury Single Account (TSA) to the Council.

Presentations were made on the under listed sub-topics by other speakers:

i)   Implementation of TSA in the States: Lessons and Experience

ii)  Cash Management and TSA Reforms: an overview of international practice

iii)   Budgeting Reforms

Reconstitution of the Niger Delta Power Holding company:

The Vice President, Prof. Osinbajo, called for nomination of new Board members for the company based on the six geo-political zones of the country. Such nominations are expected from the governors after consultations.

Laolu Akande