CBN Halts Extension for Export Proceeds Repatriation

The Central Bank of Nigeria (CBN) has announced the suspension of its policy allowing extensions for the repatriation of export proceeds. The move aims to enforce stricter compliance with foreign exchange regulations and enhance liquidity in the country’s forex market.

Exporters previously benefited from extensions that provided additional time to repatriate their earnings back into Nigeria, as mandated by law. However, the CBN has expressed concerns over delays and non-compliance, which it says undermine efforts to stabilize the naira and strengthen the nation’s foreign reserves.

In a statement, the CBN emphasized the importance of timely repatriation of export proceeds to ensure the country reaps the full benefits of its non-oil exports. “This measure is part of our commitment to enforcing discipline in the export sector and ensuring that foreign exchange earnings contribute meaningfully to national development,” the bank noted.

The policy change has drawn mixed reactions from stakeholders. Some exporters argue that the suspension could strain businesses, particularly those facing logistical or payment delays in international trade. Others acknowledge the need for compliance but advocate for a phased approach to accommodate exporters’ challenges.

Economic analysts view the move as a necessary step to address ongoing forex shortages, which have put immense pressure on the naira. By ensuring timely inflows from export proceeds, the CBN hopes to alleviate some of the strain on the country’s foreign exchange reserves and improve market stability.

As exporters adjust to the new regulations, the CBN has reiterated its readiness to work with stakeholders to address concerns and ensure the smooth implementation of the policy. However, it remains firm on its stance that compliance is crucial for sustaining Nigeria’s economic growth and stability.

This development is expected to have ripple effects across the export sector, with businesses needing to recalibrate their operations to meet the CBN’s expectations. For the broader economy, the effectiveness of this policy will likely depend on how well it is enforced and whether it succeeds in boosting forex inflows without stifling export activities.