January 10, 2025
The Central Bank of Nigeria, CBN, has announced the immediate suspension of approvals for the extension of export proceeds repatriation on behalf of exporters.
The circular which contained the directive, was signed by the acting Director of CBN’s Trade & Exchange Department, Dr W.J. Kanya, and released on Thursday.
The circular, dated January 8, 2025, marked a significant policy shift aimed at ensuring compliance with existing regulations, applies to both oil and non-oil export transactions.
Titled “Suspension of Extension of Export Proceeds on Behalf of Exporters,” the apex bank, in the circular cited the provisions of Memorandum 10A (23a) and Memorandum 10B (20a) of the Foreign Exchange Manual (Revised Edition, March 2018) as the basis for its decision, which includes:
The Immediate suspension of extension requests, beginning January 8, 2025, the CBN will no longer approve requests by authorized dealer banks to extend the timeframe for the repatriation of export proceeds on behalf of their customers, meaning exporters must comply with the stipulated timelines for the repatriation of proceeds.
For Timelines for repatriation, non-oil exports, proceeds must be repatriated and credited to the exporters’ domiciliary accounts within 180 days from the bill of lading date, while oil and gas exports, has 90 days timeframe from the bill of lading date.
CBN emphasized that exporters must adhere strictly to the timelines as they were non-negotiable.
READ MORE; CBN New Directive For POS, Sets Daily Transactions At N100,000 Per Customer
However, this CBN’s decision has placed greater responsibility on exporters and their authorized dealer banks to ensure compliance.
Authorized dealer banks have been directed to notify their customers of this development and ensure adherence to the existing regulations as failure to comply could lead to penalties.
This initiative is expected to tighten control over foreign exchange inflows, ensuring that export proceeds are promptly repatriated to support Nigeria’s foreign exchange reserves.
Through the elimination of option for extensions, the CBN aims to discourage delays in repatriation, which have been a source of concern for regulators seeking to stabilize the naira and improve liquidity in the foreign exchange market.
