As part of its sustained drive to mitigate the volatility in the foreign exchange (FX) markets and improve the exchange rate of the Naira, the Central Bank of Nigeria (CBN) has suspended with immediate effect the extension of export proceeds repatriation for exporters in the country.
The apex bank, in a circular issued on January 8 and signed by its Acting Director, Trade and Exchange Department, Dr. W. Kanya, indicated that from the date of the issuance, the CBN would no longer approve requests by authorized dealer banks to extend the timeframe for the repatriation of export proceeds on behalf of their customers.
In circular titled “Suspension of Extension of Export Proceeds on Behalf of Exporters’ the apex bank cited the provisions of Memorandum 10A (23a) and Memorandum 10B (20a) of the Foreign Exchange Manual (Revised Edition, March 2018) as the basis for its latest decision.
It partly reads: “Pursuant to the provision of Memorandum 10A (23a) and Memorandum 10E (20a) of the Foreign Exchange Manual Revised Edition (March 2018) in respect of the repatriation of export proceeds for Oil and Non-Oil Exports, all authorized Dealers are to note the following:
“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
“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,” it added.
The CBN directed all authorised dealer banks to draw the attention of their customers to the provision of extant regulation and ensure compliance.
In recent times, delayed repatriation of export proceeds has been a contentious issue among the monetary authorities and exporters with the former arguing that it is undermining its efforts targeted at boosting the nation’s foreign exchange reserves.
For instance, last year the apex bank limited international oil companies’ (IOCs’) repatriation to only 50% of their FX earnings, with the balance deferred for 90 days.
The CBN later clarified that the IOCs could pool the initial 50%, use the remaining funds locally within 90 days, or sell them to authorised FX dealers.
