EXTERNAL TRADE LETTERS OF CREDIT (CONTROL) (EXEMPTION) NOTICE
Act · Trade
A Notice specifies exemptions from letter of credit controls for certain transactions. It targets importers, the Central Bank of Nigeria, and banks. This reduces administrative burdens for low-risk categories.
EXTERNAL TRADE LETTERS OF CREDIT (CONTROL) (EXEMPTION) NOTICE
What Is This Policy?
A subsidiary notice under the External Trade Letters of Credit (Control) Act specifying categories of transactions, institutions, or amounts that are exempt from the full LC control requirements.
Who Does It Target?
Importers eligible for exemption from LC control requirements CBN administering exemptions Authorised dealer banks Federal Ministry of Finance
What Does It Aim to Achieve?
Reduce the administrative burden of LC controls for specified low-risk categories while maintaining controls where foreign exchange risk is material.
Key Features
Exemption Categories: Lists specific transaction types exempt from full LC control requirements. Threshold Exemptions: Small-value transactions may be exempt from LC requirement. Diplomatic Exemptions: Diplomatic missions and international organisations may have special exemption arrangements. CBN Discretion: CBN may grant exemptions in specific circumstances on application.
Current Status
Rollout Stage: Active Coverage: Exempt categories of trade transactions Beneficiaries: Eligible importers through reduced administrative burden Funding: Not applicable
How to Access
Importers: check if your transaction falls within exempt categories before applying for LC Exemption claims: document the basis for exemption clearly in trade papers Disputes on exemption: engage CBN Trade and Exchange Department Application method: Engage CBN or your authorised dealer bank.
Important Terms
Exemptions apply only to the categories specified — all other imports require full LC compliance Misuse of exemption status constitutes a foreign exchange offence CBN periodically reviews exempt categories to reflect current policy
Official Resources
Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)
Legal Framework
Issued under the regulatory powers of the Central Bank of Nigeria pursuant to the External Trade Letters of Credit (Control) Act as subsidiary legislation. Operates alongside the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, the CBN Act 2007, and the Banks and Other Financial Institutions Act (BOFIA) 2020. Aligns with ICC Uniform Customs and Practice for Documentary Credits (UCP 600) on letter of credit exemption frameworks.