Nigeria mulls e-CCI from Q3 2014

Central-Bank-of-Nigeria-CBN11 May 2014, Abuja – The Central Bank of Nigeria, CBN, and some other stakeholders in the financial market are assiduously working towards introducing an electronic Certificate of Capital Importation, e-CCI, in the country before the end of the third quarter of the year.

Some other bodies collaborating with the central bank on the e-CCI are the Securities and Exchange Commission, SEC, the Association of Assets Custodians of Nigeria, ACN, and the Financial Market Dealers Association. The President, ACN, Mr. Segun Sanni revealed this during an interactive session with journalists ahead of the associations 2014 annual conference which holds in London on May 28th.

The CCI is a document that tracks inflow outflow of funds from foreign investors in the country. It is to control capital flight and money laundering.

The CBN has the document and any time an investor is bringing in money; he has to obtain a CCI from the regulator.

But Sanni said: “Of course, you know we are talking about cashless and paperless environment. The world has far moved away from the era of paper documentation and things are done electronically now.

“So we are working in conjunction with the FMDA, the CBN, to have an electronic CCI and we are hopeful that before the end of third quarter of the year it would have been launched.”

Sanni put the total value of assets being managed by custodians across the globe at over $120 trillion, even as he expressed regret that Africa only holds about $1 trillion of the amount.

Nonetheless, he put the total value of portfolio investments in Nigeria at about $30 billion. “When foreign investors are coming to invest in the market, obviously they are bringing in forex. When they bring in forex, it helps the current account position of the country.

“Foreign investors tend to bring progress to the market because they are always asking for ways of improvement to processes and technology which leads to improved corporate governance. Often times, they also add to confidence in the market. When others see that foreign investors are investing in this market, they tend to come in,” he said.

According to him, the annual conference is an avenue for his association to get feedback from foreign portfolio investors.

“We get feedback in terms of what they want us to do to improve our market in areas such as infrastructure, products, market rules, market behavior and the rest of them.

“We choose London because it is generally recognised as the financial capital and we have investors coming from various parts of Europe and America to that conference,” he noted.

Top officials of the CBN, SEC, NSE, the National Bureau of Statistics, among others would be attending the conference, he said. Also speaking on the conference, tagged: “Nigeria, the Road to Emergence,” the association’s Vice President, Mr. Kemi Adewola noted that the event would help in correcting the negative perception about the Nigerian market, saying that it would help in showcasing the potential of the economy.

“If we don’t take these things to them they won’t know what we are doing. So, for us it is an avenue to let them know what is going on in the Nigerian market.

“There are many opportunities within the Nigerian capital market and if we don’t showcase them, they won’t know,” Adewola maintained.
*Obinna Chima – Thisday

About the Author