The Central Bank of Nigeria (CBN) has officially approved full repatriation of export proceeds for International Oil Companies (IOCs), allowing firms to access 100 per cent of their foreign exchange earnings through authorised dealer banks.
The directive, issued by the CBN’s Trade and Exchange Department and signed by Dr Musa Nakorji, Director of the department, was published on the apex bank’s website on Wednesday. This new policy is part of ongoing reforms to enhance liquidity and stability in Nigeria’s foreign exchange market.
Brandspur Banking News Desk reports that the move represents a significant policy shift from the bank’s 2024 guidelines, which required IOCs to pool 50 per cent of their repatriated export proceeds through authorised dealer banks while holding the remaining 50 per cent for 90 days before full repatriation.
The CBN stated, “To further liberalise and deepen the market in line with current realities, IOCs are hereby granted unfettered access to their repatriated export proceeds.” The circular further instructs authorised dealer banks to maintain proper documentation and submit monthly reports to the Trade and Exchange Department.
The apex bank emphasised that the new directive overrides all previous guidelines on cash pooling arrangements, reinforcing that IOCs now have immediate and unrestricted access to their foreign earnings. “All Authorised Dealer Banks are to note and be guided accordingly, as this directive takes immediate effect,” the circular added.
The 2024 measures had previously restricted IOCs from repatriating 100 per cent of their export proceeds immediately, allowing only half to be remitted abroad with the remainder available after 90 days. These rules also required prior approval from the CBN for cash pooling arrangements and detailed reporting of domestic financial obligations.
Industry analysts say the latest policy adjustment is expected to ease operational constraints for oil firms, improve foreign exchange flow in the economy, and enhance investor confidence in Nigeria’s oil sector.
This development is part of broader CBN efforts to stabilise the foreign exchange market, attract foreign investment, and streamline the repatriation process for key export sectors, positioning Nigeria as a more competitive and investor-friendly economy.
