The Central Bank of Nigeria(CBN) has approved the full repatriation of export proceeds by International Oil Companies, allowing them to access 100 per cent of their foreign exchange earnings through authorised dealer banks.
The directive was contained in a circular issued by the apex bank’s Trade and Exchange Department and published on its website on Wednesday.
In the circular signed by the Director of the department, Musa Nakorji, the bank stated that the move forms part of ongoing reforms aimed at improving liquidity and stability in the Nigerian foreign exchange market.
The CBN explained that the decision marks a shift from its earlier policy introduced in 2024, which allowed authorised dealer banks to pool 50 per cent of repatriated export proceeds on behalf of oil firms, while the remaining 50 per cent was retained for 90 days before repatriation.
“As part of the reforms aimed at creating more liquidity and stability in the Nigerian Foreign Exchange Market, the Bank issued two circulars in 2024, allowing Authorised Dealer Banks to cash pool 50 per cent of repatriated export proceeds on behalf of International Oil Companies with the remaining 50 per cent retained for 90 days before repatriation,” the circular stated.
However, the apex bank noted that the latest adjustment is designed to further liberalise the market in line with prevailing economic conditions.
“However, to further liberalise and deepen the market in line with current market realities, IOCs are hereby granted unfettered access to their repatriated export proceeds,” the circular read.
Under the new framework, International Oil Companies can now repatriate 100 per cent of their export proceeds through authorised dealer banks, which are required to ensure proper documentation and submit monthly reports to the CBN.
“The IOCs may repatriate 100 per cent of their export proceeds through the ADBs, who shall ensure adequate documentation and submit a monthly report to the Director, Trade & Exchange Department,” the circular added.
The CBN also clarified that the directive overrides all previous guidelines on cash pooling arrangements for oil companies.
“Please note that this provision supersedes all other circulars issued by the Bank on Cash Pooling,” the statement said.
The bank directed all authorised dealer banks to comply with the new policy with immediate effect.
“All Authorised Dealer Banks are to note and be guided accordingly, as this directive takes immediate effect,” it added.
In 2024, the CBN introduced measures affecting International Oil Companies operating in Nigeria, limiting their ability to immediately remit 100 per cent of foreign exchange proceeds to their parent companies abroad.
Under the earlier framework, oil firms were required to repatriate 50 per cent of their export proceeds immediately, while the remaining balance could only be repatriated 90 days after the inflow.
The apex bank had also implemented rules requiring oil companies to obtain prior approval for repatriation under the cash pooling arrangement and submit detailed expenditure records before funds could be transferred.
The latest policy adjustment is expected to ease restrictions on oil firms’ access to foreign exchange earnings, while potentially improving liquidity in Nigeria’s foreign exchange market.
