CBN halts extension for export proceeds repatriation
Onome Amuge
The Central Bank of Nigeria (CBN) has suspended approvals for the extension of export proceeds repatriation on behalf of exporters, affecting both oil and non-oil export transactions.
The CBN, in a circular dated January 8, 2025, stated that the decision is in compliance with existing foreign exchange regulations, and aims to ensure that exporters repatriate the proceeds of their transactions within the prescribed timeline.
According to the apex bank, the move is expected to help stabilise the country’s foreign exchange market and maintain the value of the naira against other currencies.
In the circular issued by the apex bank, W.J. Kanya, the acting director of the trade & exchange department, outlined provisions from the Foreign Exchange Manual (Revised Edition, March 2018) as the basis for the decision.
Specifically, the provisions cited were Memorandum 10A (23a) and Memorandum 10B (20a), which govern the repatriation of export proceeds by exporters within Nigeria.
The circular made clear that there would be no further extensions granted for the repatriation of export proceeds requested by authorised dealer banks on behalf of their customers.
Henceforth, exporters must repatriate their proceeds within the stipulated timelines as laid out in the Foreign Exchange Manual. This means that exporters must adhere strictly to the specified timeframes for returning their earnings to Nigeria, eliminating the possibility of further delays.
The CBN stipulated non-negotiable timelines for the repatriation of export proceeds in the circular.
According to the apex bank, 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. It also stated that these timelines are non-negotiable.
“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,” the circular stated.
The CBN’s circular places greater responsibility on exporters and their authorised dealer banks to comply with the repatriation rules, ensuring that export proceeds are repatriated within the stipulated timeframes.
Authorised dealer banks are expected to promptly notify their clients of the updated regulations and closely monitor their clients’ compliance.
The CBN warned that failure to adhere to these rules would attract penalties or other regulatory actions.