The Central Bank of Nigeria (CBN) has announced the suspension of banks extending export proceeds on behalf of exporters. This decision, aimed at enforcing stricter adherence to foreign exchange regulations, was conveyed in a circular issued by the Acting Director of the Trade and Exchange Department, Dr. W.J. Kanya.
The directive is anchored on provisions outlined in Memorandum 10A (23a) and Memorandum 10B (20a) of the Foreign Exchange Manual Revised Edition of March 2018. These regulations pertain to the mandatory repatriation of export proceeds for both oil and non-oil exports.
Repatriation Timelines for Export Proceeds
The CBN clarified that exporters must ensure the repatriation and crediting of export proceeds into their domiciliary accounts within specified timelines. For non-oil exports, proceeds must be repatriated within 180 days from the Bill of Lading date, while oil and gas exports are given a 90-day deadline.
To avoid ambiguities, the CBN emphasized the importance of compliance. It urged all Authorised Dealer Banks to notify their customers about the stipulated guidelines and enforce strict adherence to these provisions.
Implications for Exporters and Banks
This move is expected to strengthen Nigeria’s foreign exchange management by ensuring timely repatriation of export proceeds, a critical component of the country’s economic stability. By holding banks and exporters accountable, the CBN aims to bolster compliance with its foreign exchange policies, which play a pivotal role in maintaining liquidity and stability in the forex market.
A Call to Action
Authorised Dealer Banks are now tasked with the responsibility of ensuring exporters fully comply with these directives. This suspension of extensions underscores the CBN’s commitment to enhancing transparency and efficiency in Nigeria’s export operations.
The decision highlights the critical role of timely export proceeds repatriation in supporting the nation’s economic goals. Stakeholders are urged to align with the CBN’s directive to foster a more robust and compliant foreign exchange system.
Published by Hobnob News.
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