The Central Bank of Nigeria (CBN) has suspended approvals for the extension of export proceeds repatriation, effective immediately.
This directive, communicated through a circular dated January 8, 2025, applies to both oil and non-oil export transactions.
The CBN stated that the move is aimed at reinforcing compliance with existing foreign exchange regulations. The circular, signed by W.J. Kanya, Acting Director of the CBN’s Trade & Exchange Department, references the Foreign Exchange Manual (Revised Edition, March 2018), specifically Memorandums 10A (23a) and 10B (20a), as the basis for the policy.
Under this new directive, the CBN will no longer approve extensions for the repatriation of export proceeds, a decision previously requested by authorized dealer banks on behalf of their clients. Exporters must now adhere strictly to the designated repatriation timelines. Non-oil export proceeds must be repatriated within 180 days of the bill of lading date, while oil and gas proceeds must be repatriated within 90 days. These deadlines are non-negotiable.
The circular stresses that proceeds from both oil and non-oil exports must be repatriated and credited to exporters’ domiciliary accounts within the specified timeframes. The CBN has warned that any failure to comply with these timelines may result in penalties or other regulatory measures.
In response, authorized dealer banks are required to notify their clients of the updated regulations and ensure that they are adhered to.
This policy is part of the CBN’s broader efforts to boost foreign exchange inflows and strengthen the nation’s reserves. Last year, the CBN introduced measures aimed at international oil companies (IOCs) operating in Nigeria, limiting their ability to remit 100 percent of their forex proceeds to their parent companies abroad.
IOCs were required to repatriate 50 percent of their proceeds immediately, with the remaining 50 percent due within 90 days. Additionally, new rules on cash pooling were implemented, requiring prior approval from the CBN for any repatriation under the cash pooling framework, alongside detailed statements of expenditure.
These actions underscore the CBN’s commitment to ensuring timely repatriation and increasing the country’s foreign exchange reserves.
