CBN to banks: We’ll no longer approve requests for extension of export proceeds repatriation

The Central Bank of Nigeria (CBN) says requests for the extension of export proceeds repatriation by authorised foreign exchange (FX) dealers will no longer be approved.

The CBN spoke in a circular dated January 8, signed by W.J. Kanya, its acting director of the trade and exchange department, and addressed to FX dealers.

The apex bank said the decision took effect from January 8.

“Pursuant to the provision of Memorandum 10A (23a) and Memorandum 10B (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,” the circular reads.

“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.

“Accordingly, all Authorized Dealer Banks are required to draw the attention of their customers to the provision of extant regulation and ensure compliance.”

In February 2024, CBN placed limits on the transfer of proceeds from crude exports by international oil companies (IOCs) to offshore parent company accounts.

The regulator said the transfer of funds by the IOCs has an impact on liquidity in the domestic foreign exchange market.

The CBN directed banks to only transfer 50 percent of repatriated export proceeds on behalf of the IOCs to their parent company offshore accounts — with the remaining 50 percent repatriated after 90 days.

On May 7, 2024, the CBN relaxed the directive.