The Central Bank of Nigeria (CBN) has approved the full repatriation of export proceeds by International Oil Companies (IOCs), 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.
Signed by the department’s director, Dr Musa Nakorji, the circular stated that the move is part of ongoing reforms aimed at improving liquidity and stability in the foreign exchange market.
The decision marks a shift from a 2024 policy that required authorised dealer banks to pool 50 per cent of repatriated export proceeds on behalf of oil firms, while the remaining 50 per cent was held for up to 90 days before repatriation.
According to the CBN, the latest adjustment is intended to further liberalise and deepen the foreign exchange market in line with current realities.
“IOCs are hereby granted unfettered access to their repatriated export proceeds,” the circular stated.
Under the new framework, oil companies can repatriate 100 per cent of their export earnings through authorised dealer banks, which are required to ensure proper documentation and submit monthly reports to the CBN.
The apex bank also clarified that the directive supersedes all previous guidelines on cash pooling arrangements for oil companies and takes immediate effect.
“All authorised dealer banks are to note and be guided accordingly,” the circular added.
The move reverses earlier restrictions introduced in 2024, which limited IOCs’ ability to immediately remit all foreign exchange proceeds to their parent companies. At the time, firms were required to repatriate half of their earnings immediately, with the balance delayed for 90 days.
Additional rules also required CBN approval for cash pooling arrangements and detailed disclosure of expenditure before funds could be moved.
The new policy is expected to ease constraints faced by oil companies in accessing their foreign exchange earnings and could improve investor confidence in Nigeria’s foreign exchange market.
