CBN enforces stricter compliance on export proceeds repatriation

The Central Bank of Nigeria (CBN) has intensified its drive to enforce compliance with foreign exchange regulations by suspending the approval of export proceeds repatriation extensions.

In a circular dated January 8, 2025, and signed by the acting Director of the Trade & Exchange Department, Dr. W.J. Kanya, the CBN announced the immediate cessation of extensions for both oil and non-oil export transactions. Exporters must now strictly adhere to the stipulated timelines: 180 days for non-oil export proceeds and 90 days for oil and gas proceeds from the bill of lading date.

“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 authorised 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.”

Citing provisions in the Foreign Exchange Manual (Revised Edition, March 2018) specifically Memoranda 10A (23a) and 10B (20a) the apex bank emphasized that the policy aims to bolster Nigeria’s foreign exchange reserves and ensure timely repatriation of earnings from export activities.

This directive places increased obligations on exporters and their authorised dealer banks to comply with the repatriation rules. Banks have been tasked with notifying their clients of the new regulations and ensuring full compliance. The CBN warned that failure to meet these requirements could attract penalties or other regulatory sanctions.

This policy forms part of a broader strategy by the CBN to enhance foreign exchange inflows. Last year, the apex bank implemented measures affecting international oil companies (IOCs), requiring them to repatriate 50% of their forex proceeds immediately and the remaining 50 per cent within 90 days. Additionally, new rules governing cash pooling required prior approval from the CBN for repatriation under the framework, along with detailed expenditure reports.

…………

About CableNews24

At CableNews24, we’re your trusted companion in navigating today’s fast-paced world-your gateway to a world of instant information, updates, and compelling stories. We are not just an online TV and newspaper website; Offering a dynamic mix of up-to-the-minute news, and insightful articles, CableNews24 delivers everything you need to stay connected. Whether you’re catching breaking news in real-time or exploring in-depth coverage through our online newspaper, we promise to keep you informed, entertained, and ahead of the curve. From local happenings to global events, we deliver news that matters.  Join the CableNews24 experience – where news meets convenience, and your world comes alive.

CableNews24 – News, Anytime, Anywhere.

For Advertisement, Event Coverage/MC, Public Relations, Story/Article Publication, and other Media Services, kindly send an email to: cablenews24.com@gmail.com OR Kindly call: 08023535955 . To stay updated with the latest news stories, kindly visit cablenews24.com published by AAAANDREL GLOBAL SERVICES