CBN Declares No More Extensions for Export Proceeds Compliance

• The Central Bank of Nigeria (CBN) says no more timeline extension for the repatriation of export proceeds
• In a new circular, the apex bank suspended all approvals for extensions and directed banks to ensure compliance from exporters
• The proceeds from non-oil exports must be repatriated within 180 days, and oil and gas exports proceeds within 90 days

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The Central Bank of Nigeria (CBN) has issued a directive suspending all approvals for extension, and mandating all export proceeds repatriations to be done within the provided timeline.

According to the new directive, the export proceeds from oil and non-oil export transactions must be repatriated within the stipulated timeline, as there is no room for timeline extension.

This new move takes effect immediately and will enforce compliance with existing FOREX regulations.

Read also

Clearing agents make demands as customs announces new exchange rate to clear goods at ports

The circular, signed by the acting Director of CBN’s Trade & Exchange Department, Dr W.J. Kanya, was released this week. It outlined the Foreign Exchange Manual (Revised Edition, March 2018) as the basis of operations going forward.

Timeline for repatriation

Based on the provisions in Memorandum 10A (23a) and Memorandum 10B (20a), exporters would have to repatriate the proceeds from non-oil exports within 180 days and from oil and gas exports within 90 days from the bill of lading date.

The CBN said it would no longer approve applications for timeline extensions requested by banks on behalf of the exporters, as the stipulated timelines are negotiable.

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 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.”

Read also

Nigerians attest to long-lasting Dangote fuel, blast others for low-quality

The circular mandates dealer banks to notify their clients and ensure compliance to avoid penalties.

This directive applies to both oil and non-oil exporters. Recall that CBN recently released data on the biggest non-oil exporters in Nigeria.

According to that report, Dangote Fertilizer, Indorama Eleme Fertilizer, Olatunde International Starlink Global & Ideal and Outspan Nigeria are some top exporters to watch out for.

CBN launches platform for Forex trading

In related news, Legit.ng reported that the Nigerian Naira had appreciated 8%, one month after the CBN introduced the EFEMS.

The EFEMS was first announced in October 2024, but did not take effect till December 2, 2024. As at the launch date, naira was officially quoted at N1,660 but by January 3, 2025, it had appreciated to N1,535.

This indicates that the CBN policy has seen some gains, just as projected. The EFEMS was introduced as one of many efforts to curb speculation and enhance transparency in the FOREX market.

Source: Legit.ng