The Central Bank of Nigeria (CBN) has issued a circular announcing the immediate suspension of approvals for the extension of export proceeds repatriation on behalf of exporters.
Dated January 8, 2025, the directive applies to both oil and non-oil export transactions, marking a significant policy shift aimed at ensuring compliance with existing regulations.
The circular was signed by Dr W.J. Kanya, the acting Director of the CBN’s Trade & Exchange Department and released on Thursday.
About eight months ago, the apex bank issued further clarifications on the utilization of foreign exchange proceeds by IOCs.
The circular stated that oil companies are allowed to immediately pool the initial 50% of their repatriated export proceeds as required.
Also, the circular specified that the remaining 50% of the repatriated funds can be used by the oil companies to settle their financial obligations within Nigeria, as needed, during a prescribed 90-day period.
The CBN also announced that IOCs can sell 50% balance of their repatriated export proceeds to authorized forex dealers.
Culled From Nairametrics
