The Central Bank of Nigeria has issued a clarification regarding divestments, repatriation of Certificate of Capital Importation, and related transactions.

According to the circular signed by the Acting Director of Trade and Exchange Department, W. Kanya, all such transactions must be accompanied by Evidence of electronic CCI and Evidence of redemption of investment in local currency assets.

This clarification aims to provide clarity on the Foreign Exchange Manual, Memorandum 20 section 2, which outlines the procedures 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.

It is important to note that in May 2024, the Central Bank of Nigeria (CBN) announced that International Oil Companies (IOCs) would be permitted to sell the remaining 50% of their repatriated export proceeds in the Nigerian Foreign Exchange Market.

This decision was made in light of the significant repatriation of funds by foreign firms from the Nigerian economy, with a reported $5.86 billion repatriated between October 2022 and March 2023.