The Central Bank of Nigeria (CBN) has announced the immediate suspension of approvals for the extension of export proceeds repatriation on behalf of exporters.
This directive, outlined in a circular dated January 8, 2025, applies to both oil and non-oil export transactions. It marks a significant policy shift aimed at enforcing compliance with foreign exchange regulations and enhancing Nigeria’s foreign exchange reserves.
The circular, signed by Dr. W.J. Kanya, Acting Director of the Trade & Exchange Department, emphasised the provisions of the Foreign Exchange Manual (Revised Edition, March 2018) as the basis for this decision. The new rule requires exporters to strictly adhere to repatriation timelines without relying on extensions.
Under the revised guidelines, non-oil export proceeds must be repatriated and credited to exporters’ domiciliary accounts within 180 days from the bill of lading date. For oil and gas exports, the deadline is 90 days from the bill of lading date. These timelines are non-negotiable, and exporters must comply fully to avoid penalties.
The CBN’s decision increases the responsibilities of exporters and authorised dealer banks in ensuring compliance. Banks have been directed to notify their customers of the development and monitor adherence to the regulations. This policy is designed to tighten control over foreign exchange inflows and discourage delays in repatriation, a move that regulators believe will stabilise the naira and improve liquidity in the foreign exchange market.
In the broader context of its foreign exchange management, the CBN introduced measures in 2024 restricting international oil companies (IOCs) from immediately remitting 100 percent of their forex proceeds to parent companies abroad. The companies were allowed to remit only 50 percent immediately, while the remaining 50 percent could be repatriated 90 days after the inflow.
Further clarifications were issued in subsequent months, requiring IOCs to seek CBN approval before pooling funds and submit expenditure statements for the periods prior to pooling. These measures also permitted IOCs to sell half of their repatriated export proceeds to authorized forex dealers, while the remaining half could be used to settle financial obligations within Nigeria during a 90-day period.
