Authors
Expertise
The Central Bank of Nigeria (‘’CBN’’) by circular dated January 8, 2025, has notified all authorized dealers and the public that it will no longer approve requests for the extension of the repatriation period for oil export proceeds. This change impacts exporters who were previously allowed extensions beyond the statutory 180 days for non-oil exports and 90 days for oil and gas exports, set in the Revised Foreign Exchange Manual.
Introduction
The Central Bank of Nigeria (‘’CBN’’) by circular dated January 8, 2025, has notified all authorized dealers and the public that it will no longer approve requests for the extension of the repatriation period for oil export proceeds. This change impacts exporters who were previously allowed extensions beyond the statutory 180 days for non-oil exports and 90 days for oil and gas exports, set in the Revised Foreign Exchange Manual.
Under this new policy, all export proceeds must be repatriated into the exporter’s domiciliary account within the stipulated timelines. The CBN appears to be tightening enforcement, signalling that any exporter found violating this rule could face severe penalties. Exporters and authorized dealers are also under scrutiny, as they could be penalized for facilitating or failing to ensure compliance with the new directive.
This move is part of the CBN's efforts to strengthen its foreign exchange management system and improve the timely repatriation of export earnings. Exporters and authorised dealers should be mindful of these stricter rules and take necessary actions to comply.
Conclusion
The Circular issued by the CBN marks a significant policy shift aimed at tightening the repatriation of export proceeds into Nigeria. By suspending the approval for extensions on repatriation deadlines, especially for oil proceeds, the CBN stresses the importance of adhering strictly to the 180-day and 90-day timelines for non-oil and oil exports, respectively.
This change is intended to strengthen Nigeria’s foreign exchange reserves, ensure timely liquidity, and enhance economic stability. The CBN’s firm stance signals that exporters and authorized dealers who fail to comply with these new rules will face penalties. As a result, exporters must ensure the timely repatriation of proceeds, while authorized dealers are expected to play a key role in enforcing these requirements.
Ultimately, this Circular underscores the CBN’s commitment to enhancing the foreign exchange system, promoting a more efficient and disciplined export sector, and contributing to Nigeria’s long-term economic stability.
Important Notice: The information contained in this Article is intended for general information purposes only and does not create a lawyer-client relationship. It is not intended as legal advice from Jackson, Etti, & Edu (JEE) or the individual author(s), nor intended as a substitute for legal advice on any specific subject matter. Detailed legal counsel should be sought prior to undertaking any legal matter. The information contained in this Article is current to the last update and may change. Last Update: October 1, 2024.
