Recently, the federal government proposed an the amendment of the Foreign–Exchange act to enable the CBN gain total control over the capital flows as well as to restrict the outflow of Forex in the country. According to the amended draft of the Foreign-Exchange act, a jail term of up to two years awaits anyone who holds dollars in cash for more than 30 days or a fine of 20 percent of the amount of dollars found on the person.

This measure taken by the federal government and the Central bank of Nigeria is to stem the volatility in the exchange rate and bolster the ailing naira. The government said it will also prevent money being repatriated.

The existing law is “narrow in scope and prohibits the seizure, forfeiture or expropriation of imported money by the government without providing for exceptions,” the draft says.

The amendments, according to the document, are necessary “for effective monitoring and control, and to ensure probity in foreign exchange transactions in Nigeria.”

Read more at Punch.