CBN Suspends Approval for Export Proceeds Repatriation Extensions
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has issued a directive suspending approvals for the extension of export proceeds repatriation on behalf of exporters, effective immediately.
This move, outlined in a circular dated January 8, 2025, applies to both oil and non-oil export transactions. The CBN stated that this decision aims to enforce compliance with existing foreign exchange regulations, particularly Memorandum 10A (23a) and Memorandum 10B (20a) of the Foreign Exchange Manual (Revised Edition, March 2018).
Under the new directive, exporters are mandated to repatriate non-oil export proceeds within 180 days and oil and gas export proceeds within 90 days from the bill of lading date.
Authorized dealer banks will no longer be able to request extensions for their customers.
The CBN stressed that these timelines are non-negotiable and that non-compliance may result in penalties or other regulatory actions.
This directive follows a series of measures implemented by the CBN to enhance foreign exchange inflows, including restrictions on international oil companies (IOCs).
In 2024, the CBN introduced measures limiting IOCs’ ability to immediately remit 100% of their forex proceeds, requiring them to repatriate 50% immediately and the remaining 50% within 90 days.
The CBN also implemented new rules governing cash pooling by IOCs, requiring prior approval for repatriation and detailed statements of expenditure incurred before pooling.
These measures underscore the CBN’s commitment to strengthening foreign exchange regulations and ensuring compliance within the Nigerian foreign exchange market.
