CBN Grants Temporary Lifeline as It Approves Use of Expired NAFDAC Licences to Ease Market Pressures
Takeaways for Importers and Banks
In a significant regulatory move aimed at safeguarding trade continuity amidst ongoing system transitions, the Central Bank of Nigeria (CBN) has approved the temporary use of expired NAFDAC licences for import documentation and Form M processing. This decision responds to operational challenges faced by traders and financial institutions following the migration to a new trade facilitation platform.
Why the Policy Was Introduced
Importers have experienced hurdles in validating or renewing expired licences issued by the National Agency for Food and Drug Administration and Control (NAFDAC) particularly due to technical issues with the new B’Odogwu trade portal after December 31, 2025. The disruptions had the potential to stall import processing, delay access to foreign exchange, and disrupt supply chains across key sectors.
To avert these consequences, the CBN acted quickly to provide a regulatory buffer while system challenges are addressed.
What the Circular Says
According to the official directive signed by Aliyu Ashiru, Director of the CBN’s Trade and Exchange Department:
“The Central Bank of Nigeria wishes to notify all Authorised Dealer Banks (ADBs) and the general public of a temporary dispensation offered by NAFDAC permitting the continued use of NAFDAC licences that expired on 31st December, 2025, for the processing of Forms M for a two-month temporary dispensation ending February 28, 2026.”
This grace period applies strictly to expired licences and only for the purpose of processing Form a mandatory import documentation requirement that enables access to foreign exchange for imported goods.
Who It Affects
- Importers:
Businesses importing regulated products such as pharmaceuticals, processed foods, cosmetics, and medical devices can, for the next two months, submit expired NAFDAC licences for Form M processing without being blocked due to licensing delays.
- Authorised Dealer Banks (ADBs):
Banks are instructed to accept these expired licences only within the approved two-month window and strictly for Form M processing tied to foreign exchange and clearing documentation.
- NAFDAC:
The circular highlights that the dispensation follows a similar temporary measure granted by NAFDAC itself to help bridge compliance during the transition to the new platform.
Timeline and Compliance
- Expired Licences Eligible: Those that lapsed on December 31, 2025.
- Dispensation Window: Two months, ending February 28, 2026.
- Scope: Strictly for Form M processing not a blanket approval for other regulatory or operational deficiencies.
Stakeholders are cautioned that banks must adhere strictly to the timelines and should not accept expired licences beyond the dispensation period.
Industry Impact
Economists and trade experts say the move offers welcome short-term relief for the import sector, especially for businesses dealing in regulated products that depend on NAFDAC certification for quality and safety compliance. The temporary waiver reduces the immediate risk of import backlogs, forex inaccessibility, and revenue loss for traders awaiting licence renewals.
What Next for Importers
Importers are advised to use the two month cushion to:
- Complete renewal applications on the new trade platform.
- Engage with NAFDAC and Authorised Dealer Banks early to avoid post-dispensation delays.
- Monitor official CBN and NAFDAC publications for updates or extensions.
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