The Central Bank of Nigeria has suspended approvals for the extension of export proceeds repatriation on behalf of exporters, effective immediately.
This directive, issued via a circular dated January 8, 2025, applies to both oil and non-oil export transactions.
The apex bank explained that the move aims to enforce compliance with existing foreign exchange regulations.
Signed by the acting Director of the CBN’s Trade & Exchange Department, W.J. Kanya, the circular outlined provisions in the Foreign Exchange Manual (Revised Edition, March 2018) as the basis for the decision.
These provisions include Memorandum 10A (23a) and Memorandum 10B (20a).
The CBN stated that with immediate effect, it would no longer grant extensions for the repatriation of export proceeds requested by authorised dealer banks on behalf of their customers.
Exporters are now required to adhere strictly to the stipulated timelines for repatriation.
Proceeds from non-oil exports must be repatriated within 180 days from the bill of lading date, while oil and gas export proceeds must be repatriated within 90 days.
The apex bank stressed that these timelines are non-negotiable.
The circular 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 Authorized 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 & Gas exports, respectively.”
This development imposes stricter obligations on exporters and their authorised dealer banks to comply with the repatriation rules.
Banks are expected to notify their clients of the updated regulations and ensure adherence.
The CBN warned that non-compliance could attract penalties or other regulatory actions.
The policy is part of the CBN’s efforts to enhance foreign exchange inflows and bolster the country’s reserves.
Last year, the CBN introduced measures affecting international oil companies operating in Nigeria, limiting their ability to immediately remit 100 per cent of forex proceeds to their parent companies abroad.
Instead, IOCs were required to repatriate 50 per cent of their proceeds immediately, with the remaining 50 per cent to be repatriated 90 days after the inflow.
Also, the CBN implemented new rules governing cash pooling by IOCs. These rules required prior approval from the CBN for repatriation under the cash pooling framework, alongside detailed statements of expenditure incurred before pooling.
Also, last year, the apex bank further clarified these measures, allowing IOCs to pool 50 per cent of their export proceeds while using the remaining funds to settle financial obligations within Nigeria over 90 days.
IOCs were also permitted to sell the 50 per cent balance of their repatriated proceeds to authorised foreign exchange dealers.
