- Proof of redemption of investment in local currency assets is also needed
The Central Bank of Nigeria (CBN) has issued a clarification regarding the procedures for divestment and repatriation of foreign investments, emphasizing the need for specific documentation.
According to a circular released on Thursday and signed by the Acting Director of the Trade and Exchange Department, W. Kanya, the apex bank stated that all such transactions must provide evidence of an electronic Certificate of Capital Importation (CCI) and proof of redemption of investment in local currency assets.
This clarification aligns with the CBN’s Foreign Exchange Manual, particularly Memorandum 20, Section 2, which outlines the procedures for portfolio investment. The bank specified that both pre-liquidation and matured investment transactions require the presentation of the aforementioned documents.
“For the avoidance of doubt, every divestment or repatriation of foreign investment, whether pre-liquidation or matured, should present the following documents: evidence of an electronic Certificate of Capital Importation and evidence of redemption of investment in local currency assets (including money market instruments, debt securities, equities, etc.),” the CBN stated.
This update follows the CBN’s announcement in May 2024, allowing International Oil Companies to sell 50 percent of their repatriated export proceeds in the Nigerian Foreign Exchange Market. Additionally, the CBN disclosed that foreign firms repatriated $5.86 billion from the Nigerian economy between October 2022 and March 2023.