CBN clarifies requirements for foreign investment repatriation, divestment
The Central Bank of Nigeria (CBN) has issued a clarification on the requirements for divestments and repatriation of foreign investments related to the Certificate of Capital Importation (CCI).
In a circular signed by the Acting Director of the Trade & Exchange Department, the CBN, Dr. W.J. Kanya, outlined the documentation required for these transactions, reiterating its commitment to ensuring compliance in foreign exchange activities.
According to the circular, the provisions of the Foreign Exchange Manual, specifically Memorandum 20, section 2(vi), are applicable to both divestments and the repatriation of investments linked to CCI transactions.
To ensure full compliance, the CBN has mandated that every divestment or repatriation of foreign investment—whether it involves pre-liquidation or matured investments—must be accompanied by two key documents: “Evidence of electronic Certificate of Capital Importation: This document is crucial for verifying that the initial capital importation was duly recorded and acknowledged.”
“Evidence of redemption of investment in local currency assets: This includes proof of redemption in money market instruments, debt securities, equities, or other relevant local currency assets.”
The circular read, “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 (CCI) 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:
“a) Evidence of electronic Certificate of Capital Importation. b) Evidence of redemption of investment in local currency assets (money market instrument, debt securities, equities, etc.).”
The circular emphasised the importance of these documents in facilitating smooth and lawful foreign investment transactions in Nigeria.
“The CBN urges all parties involved in such transactions to comply with these requirements to avoid any regulatory breaches.”
