The Central Bank of Nigeria (CBN) has announced an immediate suspension of approvals for the extension of export proceeds repatriation. This directive, issued through a circular dated January 8, 2025, applies to both oil and non-oil export transactions.
The move, according to the apex bank, is aimed at ensuring strict adherence to existing foreign exchange regulations. The decision was based on provisions outlined in the Foreign Exchange Manual (Revised Edition, March 2018), particularly Memorandum 10A (23a) and Memorandum 10B (20a), which govern the repatriation of export proceeds.
In the circular, signed by W.J. Kanya, the acting Director of the CBN’s Trade & Exchange Department, the bank clarified that it would no longer grant extensions for the repatriation of export proceeds as requested by authorised dealer banks. Exporters are now required to comply with specific timelines for repatriating their earnings.
The new regulations stipulate that non-oil export proceeds must be repatriated within 180 days from the bill of lading date, while proceeds from oil and gas exports must be repatriated within 90 days. These timelines, the CBN emphasized, are non-negotiable.
The circular explicitly states: “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.” It further clarifies that proceeds from both oil and non-oil exports must be credited to the exporters’ domiciliary accounts within the designated timeframes.
This development imposes stricter obligations on both exporters and their authorised dealer banks to ensure compliance. Banks are expected to promptly inform their clients about these updated regulations and enforce adherence. Non-compliance with the new rules could result in penalties or other regulatory actions, the CBN warned.
The CBN’s move is part of ongoing efforts to boost foreign exchange inflows and strengthen the country’s reserves. Last year, the bank introduced measures affecting international oil companies (IOCs) operating in Nigeria, limiting their ability to remit 100 percent of forex proceeds to their parent companies abroad. Under the new rules, IOCs were required to repatriate 50 percent of their proceeds immediately and the remaining 50 percent within 90 days.
In addition, the CBN implemented rules regarding cash pooling by IOCs, requiring prior approval from the bank before repatriation under the cash pooling framework and mandating detailed statements of expenditure before funds could be pooled.
Through these measures, the CBN aims to ensure greater control over foreign exchange and foster long-term economic stability in the country.
