The Central Bank of Nigeria (CBN) has announced that it will no longer approve requests from authorized foreign exchange (FX) dealers for extensions on the repatriation of export proceeds.
This new directive took effect on January 8, 2025, as communicated in a circular signed by W.J. Kanya, Acting Director of the Trade and Exchange Department.
The circular, addressed to all FX dealers, reiterated that the timelines for the repatriation of export proceeds remain unchanged. “The repatriation timelines for export proceeds are as follows: non-oil exports, 180 days from the bill of lading date; and oil and gas exports, 90 days from the bill of lading date,” the CBN stated.
Strict Compliance Required
The CBN emphasized the need for strict adherence to the repatriation timelines as outlined in the Foreign Exchange Manual (Revised Edition, March 2018). It warned that no further extensions would be granted.
“All authorized dealers are to note that 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,” the apex bank stated.
The directive also tasked authorized dealer banks with ensuring their customers are informed of these regulations. “Proceeds of oil and non-oil exports are to be repatriated and credited into the exporters’ export proceeds domiciliary accounts within the stipulated timelines,” the circular added.
Past Measures on Export Proceeds
This decision follows previous measures by the CBN aimed at ensuring accountability and compliance in the repatriation of export proceeds. In February 2024, the CBN restricted international oil companies (IOCs) from transferring 100 percent of crude export proceeds to their offshore parent company accounts.
The restriction mandated that banks transfer only 50 percent of the repatriated export proceeds immediately, with the remaining 50 percent to be repatriated after 90 days. However, the directive was later relaxed on May 7, 2024, to allow for more flexibility.
Implications
The latest directive underscores the CBN’s efforts to tighten controls over export proceeds and boost foreign exchange liquidity in the country. This move is expected to enhance compliance with Nigeria’s foreign exchange regulations, which have been a focal point in the bid to stabilize the nation’s economy.
