Legal Question in Banking Law in Nigeria

Re: Insurance

IS THERE A NIGERIAN GOVERNMENT LAW

No, there is no such provision of law in Nigeria. But in practice banks in Nigeria usually ask for such a document in such a case. Generally, before an amount of money can be converted and transfered out of the country, the transaction must fall into two categories, either invicible trade, for instance remmitance of school fees, health bills etc or vicible trade like the importation of products and goods into Nigeria. In every case for the conversion and transfer to be accepted by the central bank of Nigeria certain documentation must be put in place, otherwise the transaction would not be approved. Basically no amount of money can be converted or transferred outside Nigeria except if it for an approved purpose or trade. It is also noteworthy that where the fund in question was imported by the foreigner, then the conversion and transfer of the fund and profit made can be done without the documentations mentioned, but a certificate of capital importation which would have been issued at the time of the importation of the fund would be enough evidence to facilitate conversion and transfer. This is the combined effect of the foreign exchange Act and the NIPC Acts of 1995.

PLACE OF SECUREMENT OF THE BOND

The Insurance Guarantee Bond may be obtained either in Nigeria or anywhere else in the world. As a matter of fact, Nigeria law recognises and enforces the application of insurance covers obtained outside Nigeria.

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