Nigerian Banks Release New Requirements for Customers Buying Dollars as Naira Nears N1300/$1

• Nigerian banks have released a fresh requirement for customers looking to buy foreign currencies.
• The new update comes as the naira records strong performance in both the official and unofficial markets
• There are strong expectations that the value of the currency will improve to at least N1,300 in the coming days

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigerian banks have sent messages on new requirements to customers seeking foreign exchange.

According to the banks, starting from April 1, 2024, customers must now provide evidence of a three-year Tax Clearance Certificate (TCC) to buy dollars.

A TCC serves as evidence of compliance with tax obligations, ensuring adherence to the stipulations outlined in Section 85 (2) of the Personal Income Tax Act, Cap P8, LFN 2004 (as amended).

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Banks' new requirements to buy dollars

Some of the banks that have sent out the new requirements include Standard Chartered Bank, Fidelity Bank and Stanbic IBTC, Punch reports.

Standard Chartered explained that the requirement applies to new and existing Form A applications processed on the Central Bank of Nigeria’s CBN trade monitoring system(TRMS).

It added that all submitted TCCs will be verified in collaboration with state tax issuing authorities before the approval of any application.

An email notification titled ‘Further Update On Tax Clearance Certificate’ reads:

“Following our previous communication on submission and verification of Tax Clearance Certificate for all FORM A applications, we wish to remind you of the requirement to provide your updated tax clearance certificate.

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“Effective 1st of April, 2024, you are required to upload your 3 years TCC for 2021, 2022 and 2023 assessment year for all new and existing FORM A applications on the CBN trade monitoring system (TRMS). All submitted TCC will be verified by the state tax issuing authority before the application is approved.”

Fidelity Bank and Stanbic IBTC had also released similar circulars to their customers, urging them to submit their TCC to get approval for foreign exchange requests, such as Form A applications.

Naira to dollar exchange rate nears N1,300/$

Earlier, Legit.ng reported that there are indications that the naira might soon strengthen to N1300/$ after it made a solid rebound for N1,400/$.

On the peer-to-peer platform, the exchange rate was N1,200 for USDT, according to data provided by Gate.io and Kucoin.

This came after the government recently made moves to encourage more dollar circulation in the country.

Source: Legit.ng