The Central Bank of Nigeria (CBN) said Monday that it has approved the use of the Department of Petroleum Resources (DPR) permit for the importation ofpetroleum products in the country.

The apex bank made this known in a notice to all authorised petroleum dealers, the Nigeria Customs Service (NCS), the Nigerian National Petroleum Corporation(NNPC) and oil market, titled: “Endorsement of DPR Permits Used for Importation of Petroleum Products,” signed by Mr. W.D Gotring on behalf of the CBN Director, Trade and Exchange Department and posted on its website Monday.
The CBN noted that the move was to further streamline the documentation requirements for petroleum products importation.

The banking sector regulator said, all authorised dealers were required to endorse the DPR permit at the reverse side, stating the date, volume and value of the products for which the Letter of Credit (LC) was established.

“After the consummation of the transaction, authorised dealers are to ensure that shipping documents are submitted by the importer. However, where the importer failed to submit all the stipulated documents, the authorised dealer is enjoined to report matter promptly for necessary action,” it added.

The banking watchdog however warned that dealers found to have processed transactions with DPR permit already exhausted shall be sanctioned appropriately, which according to the regulator could lead to the suspension of the operator from the forex market.

Meanwhile, the Naira strengthened against the US dollar on the interbank marketon Monday, following increased dollar supply from the CBN at the Wholesale Dutch Auction System (WDAS), Reuters said.
Reuters explained that the Naira firmed to N155.60 to the dollar from N155.85on Friday after the apex bank met all demand at Monday's bi-weekly auction.

The central bank sold the $499.89 million demanded at N153.05 to a dollar compared with the $300 million sold at N153.39 to a dollar it went for at the previous auction held on Wednesday.

Dealers said the sudden increase in dollar supply at the official window prompted the appreciation of the local currency at the interbank market as it signified the determination of the central bank to defend the naira.
CBN Governor, Mallam Sanusi Lamido Sanusi, had said he would use the country's foreign reserves to support the local currency than build up reserves at the risk of inflation.

"We expect the naira to strengthen further in the coming days if we have inflows coming from oil companies, foreign investors and specifically if the central bank sustains its dollar supply to the market," one dealer said.