With immediate effect, the Central Bank of Nigeria has halted approvals for exporters’ requests to extend the repatriation of export revenues.
This regulation is applicable to both oil and non-oil export operations and was issued in a circular dated January 8, 2025.
According to the apex bank, the action is intended to ensure adherence to current foreign currency laws.
The circular, which was signed by W.J. Kanya, the acting director of the CBN’s Trade & Exchange Department, stated that the decision was based on regulations included in the Foreign Exchange Manual (Revised Edition, March 2018).
Memorandum 10A (23a) and Memorandum 10B (20a) are two examples of these clauses.
The CBN declared that it would no longer extend the time it would take for authorized dealer banks to repatriate export revenues on behalf of their clients.
Exporters are now obligated to adhere fully to the set timelines for repatriation.
Oil and gas export earnings must be repatriated within 90 days of the bill of lading date, whereas non-oil export earnings must be done so within 180 days.
These deadlines cannot be negotiated, the apex bank said.
The Central Bank of Nigeria will no longer grant requests for extensions of repatriation of export proceeds made by Authorized Dealers on behalf of their clients, the circular stated.
For the avoidance of doubt, the exporters’ export proceeds domiciliary accounts must be credited with the repatriation of oil and non-oil export proceeds within 180 and 90 days, respectively, from the bill of lading date.
Exporters and their authorized dealer banks now have more stringent duties to adhere to the repatriation regulations as a result of this development.
Banks are supposed to inform their customers about the new rules and make sure they are followed.
The CBN issued a warning that failure to comply may result in fines or other regulatory measures.
The strategy is a component of the CBN’s endeavors to strengthen the nation’s reserves and increase foreign exchange inflows.
The CBN implemented regulations last year that restricted foreign oil companies doing business in Nigeria from sending all of their foreign exchange earnings back to their parent corporations.
As an alternative, IOCs had to repatriate half of their profits right away, with the other half to be repatriated ninety days following the inflow.
Additionally, the CBN established new guidelines for IOC cash pooling. According to these regulations, repatriation under the cash pooling framework requires prior CBN permission in addition to thorough reports of all expenses incurred prior to pooling.
Additionally, the apex bank clarified these procedures last year, permitting IOCs to pool 50% of their export earnings and use the remaining cash to pay off debts within Nigeria over a period of 90 days.
Additionally, IOCs were allowed to sell authorized foreign currency dealers the remaining 50% of their repatriated revenues.
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