CBN APPROVES FULL REPATRIATION OF EXPORT PROCEEDS FOR OIL FIRMS
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The Central Bank of Nigeria (CBN) has approved the full repatriation of export proceeds by International Oil Companies (IOCs), granting them access to 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 signed by its Director, Musa Nakorji. The circular stated that the move is part of ongoing reforms aimed at improving liquidity and stability in Nigeria’s foreign exchange market.
According to the CBN, the decision marks a departure from its 2024 policy, 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 held for 90 days before repatriation.
“With a view to further liberalising and deepening the 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 now 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 apex bank.
The CBN emphasised that the directive supersedes all previous guidelines on cash pooling arrangements involving oil firms and takes immediate effect. It also instructed all authorised dealer banks to comply fully with the new policy.
The development is expected to ease constraints previously faced by international oil companies in accessing their foreign exchange earnings and is seen as part of broader efforts by the apex bank to enhance market efficiency and investor confidence.
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