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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 directive, which took effect on January 8, was communicated in a circular signed by W.J. Kanya, Acting Director of the Trade and Exchange Department, and addressed to FX dealers.
According to the circular, the repatriation timelines for export proceeds remain unchanged:
– Non-oil exports: 180 days from the bill of lading date.
– Oil and gas exports: 90 days from the bill of lading date.
The CBN emphasized strict compliance with these timelines as outlined in Memorandum 10A (23a) and Memorandum 10B (20a) of the Foreign Exchange Manual (Revised Edition, March 2018).
“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 CBN stated.
Dealers’ Obligations
The apex bank also directed authorized dealer banks to inform their customers of the existing regulations to ensure compliance.
“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
In February 2024, the CBN placed restrictions on the transfer of proceeds from crude exports by international oil companies (IOCs) to their offshore parent company accounts.
The directive mandated banks to transfer only 50 percent of repatriated export proceeds on behalf of the IOCs, with the remaining 50 percent to be repatriated after 90 days.
However, on May 7, 2024, the CBN relaxed this directive, allowing for more flexibility.
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