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CBN demands evidence for all divestments, foreign investments’ repatriation

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2 years ago

CBN, law enforcement agents to monitor banks’ compliance

The Central Bank of Nigeria has clarified that all divestments, repatriation of all Certificate of Capital Importation and related transactions must provide Evidence of electronic CCI and Evidence of redemption of investment in local currency assets.

The apex bank made this clarification in a circular on Thursday signed by its Acting Director of Trade and Exchange Department, W. Kanya.

The circular is to bring clarity to its Foreign Exchange Manual, Memorandum 20 section 2, which spells out the procedure for portfolio investment.

“This is to clarify that the Foreign Exchange Manual, Memorandum 20 section 2 (vi) applies to both divestments and repatriation of all Certificate of Capital Importation (CCl) related transactions.

“For the avoidance of doubt, every divestment or repatriation of foreign investment be it a pre-liquidation or matured investment, should present the following documents: Evidence of electronic Certificate of Capital Importation and Evidence of redemption of investment in local currency assets (money the market instrument, debt securities, equities etc)”, the bank stated.

Recall that in May 2024, CBN said International Oil Companies could sell 50 percent balance of repatriated export proceeds in the Nigeria Foreign Exchange Market.

This comes as the CBN said that foreign firms repatriated $5.86 billion from the Nigerian economy between October 2022 and March 2023 alone.