The Central Bank of Nigeria (CBN) has announced the immediate suspension of approvals for extending the repatriation period of export proceeds for oil and non-oil exporters.
This directive, issued in a circular dated 8 January 2025, aims to enhance compliance with foreign exchange regulations and address concerns over delayed repatriation of funds.
The circular, signed by the Acting Director of the Trade and Exchange Department, W.J. Kanya, referenced provisions in the Foreign Exchange Manual (Revised Edition, March 2018), specifically Memorandum 10A (23a) and Memorandum 10B (20a). These provisions mandate exporters to adhere strictly to timelines for the repatriation of export proceeds.
Key Directives from the Circular
The apex bank reiterated the need for exporters to comply with the regulations by ensuring that export proceeds are repatriated within:
- 180 days for non-oil export transactions.
- 90 days for oil and gas export transactions.
“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 the stipulated timeframes,” the circular stated.
Impact of the Policy
The new directive is expected to affect exporters relying on extensions to meet the repatriation deadlines, as authorised dealers will no longer approve such requests. This move underscores the CBN’s commitment to ensuring timely foreign exchange inflows into the Nigerian economy and reducing potential loopholes for non-compliance.
Rationale Behind the Suspension
The CBN’s decision comes amidst ongoing efforts to stabilise the naira and improve foreign exchange liquidity. By enforcing stricter compliance with repatriation deadlines, the bank aims to curb delays that negatively impact Nigeria’s foreign exchange reserves.
Past Context and Future Implications
This policy aligns with Nigeria’s broader economic strategies to bolster transparency and accountability in its foreign exchange markets. However, exporters and businesses dependent on flexible timelines may face challenges adapting to the stricter framework.
The apex bank has yet to provide further details on whether this directive may be reviewed or revised in the future. Exporters are advised to comply with the updated rules to avoid penalties or disruptions to their operations.