CBN Ends Extension For Export Proceeds Repatriation

CBN ends export proceeds extension from January 8.
Non-oil: 180 days, Oil: 90 days repatriation rule.
Dealers must ensure compliance with the directive.

The Central Bank of Nigeria (CBN) has announced it will no longer approve requests from authorized foreign exchange (FX) dealers for extensions on the repatriation of export proceeds.

This directive, effective January 8, was detailed in a circular signed by W.J. Kanya, Acting Director of the Trade and Exchange Department, and addressed to FX dealers.

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EKO HOT BLOG reports that under the existing guidelines, export proceeds must be repatriated within the following timelines:

Non-oil exports: 180 days from the bill of lading date.
Oil and gas exports: 90 days from the bill of lading date.

The CBN reiterated that these timelines, outlined in the Foreign Exchange Manual (Revised Edition, March 2018), remain unchanged. It emphasized strict compliance, stating, “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 authorized dealers on behalf of their customers.”

Authorized dealer banks have been instructed to ensure their customers are aware of these regulations. Export proceeds must be credited to exporters’ domiciliary accounts within the stipulated timelines.

In February 2024, the CBN restricted international oil companies (IOCs) from transferring crude export proceeds entirely to their offshore parent company accounts.

It required banks to transfer only 50% of such proceeds immediately, with the balance to be repatriated after 90 days.

However, on May 7, 2024, the CBN eased this rule, granting more flexibility.