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Nigeria Proposes Jail Time, Fines as It Tries to Boost Naira

  • Jail sentence proposed for holding dollars more than 30 days
  • New moves will worry foreign investors further, SBM says
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Nigeria plans to give the central bank more power to control capital flows and prevent foreign-exchange being taken out of the country, including jail time and fines for offenders as authorities battle a shortage of dollars.

Authorities should be able to jail for as long as two years anybody holding dollars in cash for more than 30 days, or fine them 20 percent of the amount, according to a draft amendment to Nigeria’s Foreign-Exchange Act. The proposals were published this week on the website of the Nigerian Law Reform Commission, which reviews legislation. Regulators should also be able to prevent money being repatriated “in accordance with the terms and conditions as may be prescribed by the central bank from time to time,” the draft shows.