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The Central Bank of Nigeria (CBN) has announced the suspension of requests for the extension of export proceeds repatriation on behalf of exporters, in a move aimed at ensuring stricter compliance with foreign exchange regulations.
In a circular dated 8 January, signed by the acting Director of the CBN’s Trade & Exchange Department, W.J. Kanya, the apex bank stated that it would no longer approve any such requests from authorised dealers acting on behalf of their customers.
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The directive applies to both oil and non-oil export proceeds, according to the CBN’s Trade and Exchange Department.
The circular, released on Thursday, referenced provisions in the Foreign Exchange Manual Revised Edition (March 2018) to explain the policy shift.
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“Pursuant to the provision of Memorandum 10A (23a) and Memorandum 10E (20a) of the Foreign Exchange Manual Revised Edition (March 2018) in respect of the repatriation of export proceeds. for Oil and Non-Oil
Exports, all authorized Dealers are to note the following
“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
“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 180 days and 90 days from the bill of lading date for Non-Oil and-Oil & Gas exports respectively,” it read.
It directed all authorised dealer banks to draw the attention of their customers to the provision of extant regulation and ensure compliance.
This development comes as Nigeria grapples with foreign exchange scarcity, with the naira struggling to maintain stability.
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Delayed repatriation of export proceeds has long been a point of contention, with regulators arguing that it undermines the country’s foreign exchange reserves.
The bank last year limited international oil companies (IOCs) to repatriating only 50 per cent of their forex earnings immediately, with the balance deferred for 90 days.
Subsequently, the CBN clarified that IOCs could pool the initial 50 per cent, use the remaining funds locally within 90 days, or sell them to authorised forex dealers.
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