CBN stops extension of export proceeds repatriation

The Central Bank of Nigeria has suspended approvals for the extension of export proceeds repatriation on behalf of exporters, efficient instantly.

This directive, issued through a round dated January 8, 2025, applies to each oil and non-oil export transactions.

The apex financial institution defined that the transfer goals to implement compliance with current international alternate rules.

Signed by the appearing Director of the CBN’s Commerce & Change Division, W.J. Kanya, the round outlined provisions within the Overseas Change Guide (Revised Version, March 2018) as the premise for the choice.

These provisions embrace Memorandum 10A (23a) and Memorandum 10B (20a).

The CBN said that with rapid impact, it could not grant extensions for the repatriation of export proceeds requested by authorised supplier banks on behalf of their prospects.

Exporters at the moment are required to stick strictly to the stipulated timelines for repatriation.

Proceeds from non-oil exports have to be repatriated inside 180 days from the invoice of lading date, whereas oil and gasoline export proceeds have to be repatriated inside 90 days.

The apex financial institution burdened that these timelines are non-negotiable.

The round stated, “With impact from the date of this round, the Central Bank of Nigeria will not approve requests for extension of repatriation of export proceeds by Licensed Sellers on behalf of their prospects.

“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 inside 180 days and 90 days from the invoice of lading date for Non-Oil and Oil & Gasoline exports, respectively.”

This improvement imposes stricter obligations on exporters and their authorised supplier banks to adjust to the repatriation guidelines.

Banks are anticipated to inform their purchasers of the up to date rules and guarantee adherence.

The CBN warned that non-compliance might appeal to penalties or different regulatory actions.

The coverage is a part of the CBN’s efforts to boost international alternate inflows and bolster the nation’s reserves.

Final 12 months, the CBN launched measures affecting worldwide oil corporations working in Nigeria, limiting their potential to right away remit 100 per cent of foreign exchange proceeds to their father or mother corporations overseas.

As a substitute, IOCs have been required to repatriate 50 per cent of their proceeds instantly, with the remaining 50 per cent to be repatriated 90 days after the influx.

Additionally, the CBN carried out new guidelines governing money pooling by IOCs. These guidelines required prior approval from the CBN for repatriation beneath the money pooling framework, alongside detailed statements of expenditure incurred earlier than pooling.

Additionally, final 12 months, the apex financial institution additional clarified these measures, permitting IOCs to pool 50 per cent of their export proceeds whereas utilizing the remaining funds to settle monetary obligations inside Nigeria over 90 days.

IOCs have been additionally permitted to promote the 50 per cent steadiness of their repatriated proceeds to authorised international alternate sellers.