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Third party peril – The Nation
Sep 28, 2020
While CBN should punish forex abusers, it should protect legitimate dealers
Terrorism is an existential threat. Money laundering, whether or not it feeds terrorism, is no less a threat, on the economic front. So, the Central Bank of Nigeria (CBN) can hardly be faulted for cracking down on corporates and individuals, accused of skewing their forex access, for possible terrorism funding and sundry money laundering.
As at the last count, the apex bank has put no less than 100 of such under its harsh investigative radar, with a view to docking those who have cases to answer, and sanctioning the guilty thereafter.  Again, no right thinking person can question this move. It is legitimate and justified to protect country; and fortify the access of lawful players to legitimate forex.
But the sore thumb, in all these new CBN moves, is the abolition of “Form M” payment, a trading instrument that allows legitimate third party players to access forex, to import critical components for their businesses. It is this spectre of wholesale ban, on a legitimate trading instrument, critical to the business health of many firms, that is rather worrisome.
Newspaper firms, for instance, are no direct newsprint sellers. Or are they basic printing press manufacturers, repairers or servicing firms. Yet, most of the players in this publishing sub-sector are constrained, as third parties, to climb the back of primary players, to source their needs.
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