CBN Approves Temporary Relief for Importers

The Central Bank of Nigeria has granted a temporary extension for importers to use expired National Agency for Food and Drug Administration and Control licences. This measure applies to import documentation until February. The decision aims to ease pressure on businesses navigating Nigeria's evolving trade processing systems.

Understanding the Licence Extension

NAFDAC licences typically require annual renewal for companies importing regulated products like pharmaceuticals, food items, and cosmetics. The CBN's directive allows importers with licences that expired after a certain date to continue using them for customs clearance. This applies specifically to Form M submissions, which are mandatory for all import transactions in Nigeria. The extension runs through the end of February, providing a three-month window for businesses to regularise their documentation.

Why It Matters

This temporary measure addresses immediate logistical challenges in Nigeria's import sector. Many businesses faced shipment delays and storage costs due to licence renewal backlogs. The Pharmaceutical Society of Nigeria reported in 2023 that 40% of member companies experienced import disruptions from documentation issues. The Manufacturers Association of Nigeria noted that trade processing delays cost members an average of ₦15 million monthly in extra charges. By allowing continued use of expired licences, the CBN prevents further supply chain disruptions during peak import seasons.

System Transitions Create Documentation Challenges

Nigeria's trade processing framework has undergone significant digital transformation in recent years. The National Single Window initiative, launched in 2022, aims to streamline customs procedures across 25 government agencies. Implementation has created temporary coordination gaps between different regulatory bodies. NAFDAC's own electronic licensing portal, introduced in 2021, processes approximately 8,000 applications monthly according to 2023 agency data. Some renewals take longer than the standard 30-day processing period, creating documentation gaps for importers.

What Businesses Should Watch

Importers should verify their specific eligibility for this temporary extension. The CBN's circular applies only to licences that expired within a defined period, not all expired documentation. Companies must still initiate renewal processes with NAFDAC immediately to avoid disruptions after February. The agency charges ₦150,000 for most licence renewals, approximately $100 at current exchange rates. Businesses should monitor for potential extensions beyond February if system challenges persist. They should also prepare for stricter enforcement once the grace period ends.

Broader Trade Context

Nigeria's import sector handles approximately $50 billion in goods annually according to 2022 National Bureau of Statistics data. Regulated products requiring NAFDAC licences account for roughly 15% of this volume. Recent trade policy changes include the Nigerian Customs Service's deployment of the Automated System for Customs Data. This system interfaces with multiple regulatory databases, including NAFDAC's. Integration challenges have occasionally created documentation mismatches that delay cargo clearance at ports like Apapa and Tin Can Island.

Practical Implications for Companies

Import-focused businesses like Emzor Pharmaceutical Industries, Dangote Flour Mills, and Nestlé Nigeria can benefit from this temporary relief. These companies regularly import raw materials and finished products requiring NAFDAC certification. The extension allows them to maintain inventory levels during the critical year-end period. Smaller importers also gain breathing room to complete renewal procedures without halting operations. All businesses must ensure their Form M submissions accurately reflect the extended licence status to avoid customs rejection.

Looking Ahead

The CBN's action reflects ongoing efforts to balance regulatory compliance with practical business needs. Similar temporary measures have been implemented during previous system transitions, including the 2020 switch to the Form M electronic platform. The success of this extension will depend on NAFDAC's capacity to process renewal applications efficiently. The agency aims to reduce processing times to 21 days through its digital portal. Importers should use this window to complete all required documentation and prepare for full compliance by March.