The Central Bank of Nigeria (CBN) has mandated that all foreign investment divestments and repatriations must be accompanied by documented evidence.
This includes electronic Certificates of Capital Importation (CCI) and proof of redemption for investments in local currency assets.
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The directive was outlined in a circular titled “Circular on Memorandum 20-22 of the Foreign Exchange Manual,” issued on August 8, 2024.
Dr. W.J. Him, acting Director of the CBN’s Trade and Exchange Department, emphasized that the circular is addressed to all Authorised Dealer Banks (ADBs) and the public. It clarifies that section 2 (vi) of Memorandum 20 of the Foreign Exchange Manual applies to both divestments and repatriations related to CCI transactions.
The circular stipulates that the process for portfolio investment requires a prospective investor to appoint a local bank or broker to facilitate the purchase. Funds must be transferred electronically to a designated bank, which will then issue the investor an electronic CCI within 24 hours.
“Authorised Dealers shall keep separate records of the investment and render returns to CBN,” the manual notes.
For divestment, investors must return to the bank with the following documents: “a. Evidence of electronic Certificate of Capital Importation; b. Evidence of redemption of the money market instrument.”
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The circular also specifies that only funds channeled through authorised dealers for investment purposes are eligible. Funds from exports and ordinary domiciliary accounts are excluded.
The revised Foreign Exchange Manual is issued by the CBN under the powers conferred by the Foreign Exchange (Monitoring & Miscellaneous Provisions) Act 17 of 1995, Cap F34. It serves as a guide for authorised dealers and the public in processing foreign exchange transactions.
