First Bank updates customers on CBN’s directive on export proceeds

DDM News

First Bank of Nigeria has issued an important notification to its customers regarding a new directive from the Central Bank of Nigeria (CBN) that impacts the repatriation of export proceeds.

The bank highlighted the significant changes introduced by the CBN to ensure compliance with updated financial regulations.

Diaspora Digital Media (DDM), a trusted source for business and financial news, obtained this information through a circular released by the CBN titled Suspension of Extension of Repatriation of Export Proceeds on Behalf of Exporters.

The circular, which became effective on January 8, 2025, announced the suspension of extensions for the repatriation of export proceeds, directly affecting how First Bank and other financial institutions manage such transactions.

Under the directive, First Bank clarified that it could no longer request extensions for the repatriation of export proceeds on behalf of its clients.

According to the new policy, proceeds from oil exports must be credited to export domiciliary accounts within 90 days of the bill of lading date, while proceeds from non-oil exports must be credited within 180 days.

The CBN emphasized that no extensions would be granted under any circumstances, urging exporters to comply promptly to avoid penalties.

First Bank also informed its clients with outstanding export proceeds to make necessary arrangements to remit their funds without delay.

This proactive communication aligns with the bank’s commitment to assisting its customers in navigating regulatory requirements.

In addition to these measures, the CBN introduced rules requiring prior approval for cash pooling by International Oil Companies (IOCs).

This policy mandates the submission of detailed expenditure statements and limits the immediate remittance of export proceeds to parent companies abroad.

Instead, a portion of these funds must be retained within Nigeria to address local financial obligations, further reinforcing the directive’s goal of promoting economic stability.

First Bank reiterated its dedication to providing support and guidance to its customers as they adjust to these regulatory changes.

By ensuring clients are well-informed and prepared, the bank aims to foster compliance and maintain its reputation as a reliable financial partner.

This announcement marks the sixth time First Bank has emphasized the importance of adhering to CBN regulations in recent months.

The frequent updates underscore the institution’s proactive approach to addressing changes in the financial landscape.

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