CBN suspends export proceeds repatriation extension

The Central Bank of Nigeria (CBN) has announced the immediate suspension of approvals for the extension of export proceeds repatriation for exporters.

A circular dated January 8, 2025, issued by the CBN, states that this directive applies to both oil and non-oil export transactions. The CBN’s decision is aimed at ensuring compliance with existing foreign exchange regulations.

The circular, signed by Dr. W.J. Kanya, the acting Director of the CBN’s Trade & Exchange Department, cites the Foreign Exchange Manual (Revised Edition, March 2018), particularly Memorandum 10A (23a) and Memorandum 10B (20a), as the basis for the decision.

Effective immediately, the CBN will no longer approve requests from authorised dealer banks to extend the repatriation deadlines for export proceeds on behalf of exporters. Exporters must now adhere strictly to the stipulated timelines for repatriation: proceeds from non-oil exports must be repatriated within 180 days from the bill of lading date, while oil and gas export proceeds must be repatriated within 90 days. These timelines are non-negotiable.

The CBN’s circular emphasizes that, from the date of the directive, oil and non-oil export proceeds must be repatriated and credited to exporters’ export proceeds domiciliary accounts within the specified timelines. Non-compliance with this rule could result in penalties or other regulatory actions.

This policy is part of the CBN’s broader efforts to increase foreign exchange inflows and strengthen the country’s reserves.

In 2024, the CBN introduced additional measures affecting international oil companies (IOCs) operating in Nigeria. IOCs were restricted from immediately remitting 100 percent of their forex proceeds to their parent companies. Instead, they were required to repatriate 50 percent of proceeds immediately, with the remaining 50 percent due for repatriation 90 days after the inflow.

The CBN also put in place new rules for cash pooling by IOCs, requiring prior approval for repatriation under the cash pooling framework, along with detailed expenditure statements before pooling. Furthermore, IOCs were allowed to pool 50 percent of their export proceeds and use the remaining funds to settle financial obligations in Nigeria within 90 days. The repatriated proceeds could then be sold to authorised foreign exchange dealers.