Nigeria: CBN Issues Updated Forex Guidelines for CCI Transactions

The Central Bank of Nigeria (CBN) has released new guidelines clarifying the application of the Foreign Exchange Manual concerning transactions involving Certificates of Capital Importation (CCI). According to the recent circular issued by Dr. W. J. Kanya, Acting Director of the Trade and Exchange Department at the CBN, these guidelines apply to both divestments and repatriations.

The circular specifies that Memorandum 20, Section 2 (vi) of the Foreign Exchange Manual governs all transactions related to CCI, whether they involve divestments or the repatriation of foreign investments.

To ensure compliance, the notification outlines the necessary documentation required for such transactions. These include:

1. Evidence of the electronic Certificate of Capital Importation.
2. Proof of redemption of investments in local currency assets, such as money market instruments, debt securities, and equities.

This directive is aimed at providing clarity and ensuring proper documentation for all CCI-related financial activities.