Findings by Shipping Position Daily have revealed that Nigerian exporters, particularly Small and Medium Enterprises (SMEs), are grappling with significant challenges following a new directive from the Central Bank of Nigeria (CBN) regarding the repatriation of export proceeds.
Recall that the CBN in a circular, titled “Suspension of Extension of Repatriation of Export Proceeds on Behalf of Exporters” has, (effective 8 January 2025) suspended extensions for repatriation of export proceeds.
The new policy reportedly requires all non-oil export proceeds to be credited to export domiciliary accounts within 90 days from the date of the bill of lading and are expected to be credited into the exporters’ export domiciliary account 180 days from the date on the bill of lading.
Additionally, banks are now restricted from requesting an extension on repatriation timelines on behalf of exporters. Industry players fear that this change could create more bottlenecks for SME exporters who already struggle with currency exchange and cross-border financial transactions.
Speaking with the Executive President of West African Association for Cross-Border Trade in Agro-forestry-pastoral and Fisheries Products (WACTAF), Alhaji Salami Nasiru, he expressed concerns over the policy, emphasizing that SMEs are the most affected.
Nasiru noted that most exporters have not even seen the official circular from the CBN, but acknowledged that repatriation remains a major challenge for SMEs. He further explained that multinational corporations such as PZ, Dangote, and Olam are less affected by the new policy due to their established financial frameworks and global networks.
The exporter stressed that the policy shift has raised concerns within the export sector, as many SMEs exporting to countries like Ghana, Togo, and Liberia must navigate complex currency conversion processes, often resulting in financial losses.
However, exporters operating in French-speaking West African nations face fewer difficulties due to the shared CFA currency, which simplifies transactions. Alhaji Nasiru urged relevant authorities to provide a more flexible framework that accommodates the realities of cross-border trade, particularly for SMEs.
“The biggest problem we are facing today is SME-related. They have challenges in the area of repatriation. Those facing repatriation challenges are SMEs. Multinational groups don’t have these problems because they have sister companies abroad to facilitate transactions.
“The real struggle is for smaller exporters who deal with multiple African currencies, especially within West Africa”, he added.
On his part, Prince Segun Adefioye, a stakeholder at Lilypond-Ijora export terminal in Lagos, also raised concerns about the directive, emphasizing the need for stakeholder engagement before implementing such policies.
Adefioye further suggested that the directive should be suspended until stakeholders are consulted. “They should call a stakeholders’ meeting before they can issue any order. Let them gather opinions, suggestions, and advice before making policies that will affect exporters.
“The Central Bank has issued that order, but at the same time, they need to consider the stakeholders before making such decisions. Let every stakeholder contribute their quota before issuing an order,” he stated.
