Abuja, Nigeria – The Central Bank of Nigeria (CBN) has announced the suspension of approvals for the extension of export proceeds repatriation timelines. The directive, effective immediately, applies to all oil and non-oil export transactions.
In a circular dated January 8, 2025, and signed by the acting Director of the Trade & Exchange Department, W.J. Kanya, the apex bank emphasized the need for strict compliance with existing foreign exchange regulations. The directive is rooted in provisions outlined in the Foreign Exchange Manual (Revised Edition, March 2018), specifically Memorandum 10A (23a) and Memorandum 10B (20a).
New Regulations
Under the new policy, the CBN will no longer approve requests by authorised dealer banks on behalf of exporters to extend repatriation timelines. Exporters are now mandated to adhere strictly to the following timelines:
- Non-oil export proceeds: Must be repatriated within 180 days from the bill of lading date.
- Oil and gas export proceeds: Must be repatriated within 90 days from the bill of lading date.
The apex bank stated that these timelines are non-negotiable and warned that non-compliance could result in penalties or other regulatory actions.
Stricter Obligations on Exporters and Banks
Authorised dealer banks are required to inform their clients of the updated regulations and ensure full compliance. Exporters must also credit their export proceeds to domiciliary accounts within the stipulated timelines.
This policy is part of the CBN’s broader strategy to strengthen foreign exchange inflows and bolster Nigeria’s reserves.
Previous CBN Measures on Forex Repatriation
The latest directive follows a series of measures implemented by the CBN to regulate foreign exchange inflows and outflows. Last year, the CBN imposed new restrictions on international oil companies (IOCs) operating in Nigeria. These measures included:
- Forex proceeds repatriation: IOCs were required to immediately repatriate 50% of their proceeds while the remaining 50% had to be repatriated within 90 days.
- Cash pooling rules: IOCs needed prior CBN approval for repatriation under the cash pooling framework, along with detailed statements of expenditure incurred before pooling.
The CBN also allowed IOCs to use 50% of their repatriated proceeds to settle financial obligations within Nigeria and permitted them to sell the remaining 50% to authorised foreign exchange dealers.
With the suspension of export proceeds extension requests, the CBN reiterated its commitment to enforcing foreign exchange regulations. This move, it noted, aims to enhance compliance, improve transparency, and secure Nigeria’s foreign exchange reserves.
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