The Central Bank of Nigeria (CBN) announced the immediate suspension of approvals for extensions on the repatriation of export proceeds, marking a significant step to enforce compliance with the country’s foreign exchange regulations.
In a circular dated January 8, 2025, and signed by Acting Director of the CBN’s Trade and Exchange Department, W.J. Kanya, the apex bank clarified that the directive applied to both oil and non-oil export transactions.
The move drew from provisions outlined in the Foreign Exchange Manual (Revised Edition, March 2018), particularly Memorandum 10A (23a) and Memorandum 10B (20a).
The statement added that exporters must adhere to existing timelines for repatriating export proceeds. Non-oil export proceeds must be repatriated within 180 days of the bill of lading date, while oil and gas export proceeds have a 90-day deadline. These timelines were now deemed non-negotiable.
The statement said, “With effect from the date of this circular, the Central Bank of Nigeria will no longer approve requests for extension of repatriation of export proceeds by Authorised Dealers on behalf of their customers. For the avoidance of doubt, proceeds of oil and non-oil exports are to be repatriated and credited into the exporters’ export proceeds domiciliary accounts within 180 days and 90 days from the bill of lading date for non-oil and oil and gas exports, respectively.
Accordingly, all Authorised Dealer Banks were required to draw the attention of their customers to the provision of extant regulation and ensure compliance.
The directive imposed stricter obligations on exporters and authorised dealer banks to comply with repatriation rules. Banks are now required to notify their clients about these updated regulations and ensure full compliance. The CBN also warned that failure to adhere to the guidelines could result in penalties or other regulatory actions.
The policy formed part of broader efforts by the CBN to enhance foreign exchange inflows and strengthen Nigeria’s foreign reserves.
Nume Ekeghe
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