Analysing Nigeria’s suspension of extension of export proceed requests

The Central Bank of Nigeria has recently taken a significant step by suspending requests for the extension of export proceeds repatriation on behalf of exporters. This move is aimed at ensuring stricter compliance with foreign exchange regulations and increasing FX liquidity in the market. Bamidele Ayemibo, CEO of 3TImpex Consulting, sheds light on this directive and provides insights on the outlook for exports and opportunities under the African Continental Free Trade Area. Ayemibo emphasized that the CBN's efforts are geared towards enhancing FX liquidity in the market. He highlighted previous measures taken by the CBN, such as the restriction on international oil companies (IOCs) from immediately repatriating 100% of their forex proceeds. The recent directive regarding the extension of export proceeds repatriation is seen as a step in the right direction, although Ayemibo suggests that more can be done to support exporters facing challenges in repatriating funds. The suspension of requests for extensions poses potential challenges for exporters who may experience delays in repatriating export proceeds within the stipulated timeline of 180 days. Ayemibo explained that while some exporters face payment delays from buyers, there is a need for additional support mechanisms beyond the CBN directive. He proposed leveraging government establishments, such as embassies in foreign countries, to ensure timely recoveries for exporters. Looking ahead, Ayemibo expressed optimism for exporters in 2025, emphasizing the potential opportunities under the African Continental Free Trade Area. He mentioned the successful first shipment under the trade agreement in the previous year and anticipated further progress in cross-border trade. Ayemibo also highlighted the appointment of a new Minister of Trade and the expectation for enhanced initiatives to boost non-oil exports. In conclusion, Ayemibo underscored the importance of proactive measures to stimulate export growth in Nigeria. While acknowledging challenges in the sector, he remained hopeful for positive developments under the new administration and emphasized the need for effective policies to drive export diversification and long-term economic growth.