The Central Bank of Nigeria (CBN) has announced a sharp policy shift that halts the extension of export proceeds repatriation. Starting January 8, 2025, exporters will no longer be able to rely on extensions for repatriating their foreign earnings.
In a circular signed by Dr. W.J. Kanya from the CBN’s Trade and Exchange Department, the bank stressed that both oil and non-oil export proceeds must be repatriated within strict timelines. Non-oil exporters must repatriate their proceeds within 180 days, while oil and gas exporters must meet the 90-day deadline from the bill of lading date.
This new directive places the responsibility squarely on exporters and their authorized dealers to meet these deadlines. Failure to comply could lead to penalties or other regulatory actions.
The move aims to tighten control over Nigeria’s foreign exchange inflows and stabilize the naira. The CBN’s decision eliminates previous extensions, hoping to curb delays that have hindered forex liquidity. The bank’s goal is to ensure that export proceeds are quickly repatriated to support the country’s foreign exchange reserves.
Earlier, the CBN had restricted international oil companies (IOCs) from immediately remitting 100% of their forex proceeds, allowing them to repatriate only 50% upfront, with the remainder within 90 days.
Now, with the new suspension order, the CBN is setting a firm deadline for all exporters, signaling a crackdown on delays in the repatriation process. It’s a critical step to improve forex reserves and stabilize the currency.