In a move aimed at tightening the management of foreign exchange, the Central Bank of Nigeria (CBN) has announced that it will no longer approve requests for the extension of repatriation of export proceeds by authorised dealers on behalf of their customers.

The decision, which is effective immediately, was disclosed in a circular signed by W.J. Kanya, acting director of the Trade and Exchange Department.

The circular, addressed to all authorised dealers and the general public, emphasises the need for strict adherence to the provisions outlined in the foreign exchange manual (Revised Edition, March 2018).

Specifically, the notice reiterates that the proceeds of oil and non-oil exports must be repatriated and credited into the exporters’ export proceeds domiciliary accounts within 180 days for oil & gas exports and 90 days for non-oil exports, starting from the date of the bill of lading.

“This is a clear directive that aims to ensure prompt and efficient repatriation of export proceeds, which is vital for the stability of our foreign exchange market,” said an analyst. “It is critical for both oil and non-oil exporters to comply with this regulation to avoid any disruptions in their dealings with authorised dealers.”

Authorised dealer banks are now required to bring this new directive to the attention of their customers and ensure compliance. The move is expected to enhance the liquidity of the foreign exchange market by reducing delays in the repatriation of export proceeds, which has been a significant concern for the CBN in recent times.

The CBN’s action demonstrates its continued efforts to strengthen the country’s foreign exchange policy framework and ensure timely compliance with regulations that promote economic stability.

As the new measure takes effect, exporters will have to adjust their operations accordingly, with banks playing a central role in ensuring compliance with the 180-day and 90-day time frames. The central bank has stressed the importance of adhering to these timelines, cautioning that failure to comply could lead to repercussions for both exporters and the banks handling their transactions.

The suspension of the extension requests is seen as part of a broader strategy to address Nigeria’s ongoing challenges related to foreign currency management and economic stability.