The Central Bank of Nigeria has announced the immediate suspension of approvals for extensions of export proceeds repatriation, affecting both oil and non-oil export transactions.
This directive was issued via a circular dated January 8, 2025, signed by The acting Director of the CBN’s Trade & Exchange Department, W.J. Kanya.
The decision is rooted in the Foreign Exchange Manual (Revised Edition, March 2018), specifically Memorandum 10A (23a) and Memorandum 10B (20a).
The circular stated, “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.”
Exporters are now required to adhere strictly to these timelines, which the CBN emphasized are non-negotiable. Non-oil export proceeds 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 urged authorised dealer banks to inform their clients of the updated rules and ensure compliance. Failure to adhere to these regulations could result in penalties or other regulatory actions.
This policy aims to enhance foreign exchange inflows and strengthen Nigeria’s foreign reserves.
In its efforts to manage foreign exchange, the CBN had previously implemented measures affecting international oil companies (IOCs).
These included restrictions on their ability to transfer 100% of forex proceeds to parent businesses abroad. Instead, 50% of export revenues had to be repatriated right away, with the remaining 50% returned within 90 days.
The CBN also imposed restrictions requiring prior approval for repatriation under cash pooling agreements and required comprehensive expenditure reports.
These procedures enabled IOCs to pool 50% of their revenues while using the remainder to meet financial obligations in Nigeria, with the option to sell the balance to licensed forex dealers.
The CBN’s latest guideline reaffirms its commitment to tightening foreign exchange controls in order to foster budgetary discipline and strengthen the economy.