First Bank of Nigeria has informed its customers about a recent directive issued by the Central Bank of Nigeria (CBN).
The CBN, in a circular titled Suspension of Extension of Repatriation of Export Proceeds on Behalf of Exporters, announced the suspension of extensions for the repatriation of export proceeds, effective 8 January 2025.
Under this directive, First Bank will no longer be able to request extensions for the repatriation of export proceeds on behalf of its clients.
All oil export proceeds are expected to be credited to export domiciliary accounts within 90 days from the date on the bill of lading, while non-oil export proceeds must be credited within 180 days.
No extensions will be allowed.
This regulation, which took effect on 8 January 2025, requires clients with outstanding export proceeds to make arrangements to remit their proceeds promptly to avoid breaching the directive.
The CBN also implemented rules requiring prior approval for cash pooling by IOCs.
These measures included submitting detailed expenditure statements and restricting the immediate remittance of all proceeds to parent companies abroad. The remaining funds were allowed for use within Nigeria to meet local financial obligations.
