New CBN circular clarifies existing rule on certificate of capital importation for forex repatriation, divestment

The Central Bank of Nigeria (CBN) has issued a new circular detailing the documentation required for foreign investment divestments and repatriations related to the Certificate of Capital Importation (CCI).

The circular, signed by Dr. W.J. Kanya, mandates that these transactions must include evidence of the electronic Certificate of Capital Importation and proof of redemption in local currency assets.

The CBN emphasized that these requirements are outlined in the Foreign Exchange Manual, specifically Memorandum 20, Section 2(vi).

The goal is to ensure that all foreign investment transactions are conducted smoothly and in compliance with Nigerian foreign exchange regulations.

This move follows recent changes in regulations affecting International Oil Companies (IOCs) and highlights a growing trend of foreign direct investors increasing their asset disposals in Nigeria.

The new guidelines aim to improve transparency and adherence to legal requirements in foreign exchange transactions.