The Central Bank of Nigeria has issued a directive allowing banks to temporarily accept expired National Agency for Food and Drug Administration and Control licenses for foreign exchange transactions. The move aims to prevent disruptions to trade activities while NAFDAC transitions to a new system.
The directive, which was contained in a circular signed by the Director of the Trade and Exchange Department, Aliyu Ashiru, grants a two-month grace period until February 28, 2026, for the use of licenses that expired on December 31, 2025. During this period, banks and authorized dealers are instructed to continue accepting the expired licenses strictly for Form M processing, ensuring full compliance with the conditions guiding the temporary dispensation.
The Central Bank of Nigeria notified all authorized dealer banks and the general public of the temporary dispensation, permitting the continued use of NAFDAC licenses for the processing of Forms M. This decision is intended to mitigate potential disruptions to trade activities as NAFDAC completes its transition from the legacy NICIS II platform to the new B’Odogwu system.
The temporary acceptance of expired licenses is expected to facilitate the smooth processing of foreign exchange transactions for imports, thereby maintaining the stability of trade in the country. The Central Bank of Nigeria’s directive is a response to the need for a seamless transition to the new system, ensuring that trade activities continue uninterrupted.
The NAFDAC licenses are a critical requirement for the processing of Forms M, which are essential for foreign exchange transactions. The expiration of these licenses on December 31, 2025, would have otherwise resulted in significant disruptions to trade activities, highlighting the importance of the Central Bank of Nigeria’s intervention.
As the two-month grace period progresses, it is expected that NAFDAC will complete its transition to the new B’Odogwu system, ensuring a more efficient and effective process for the issuance of licenses. The Central Bank of Nigeria’s directive has provided a temporary solution to prevent disruptions to trade activities, and it remains to be seen how the new system will impact trade in the country.
