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The Central Bank of Nigeria (CBN) has scrapped a restrictive “cash pooling” policy that previously required international oil companies to temporarily hold back a portion of their export earnings.
In a circular dated March 25, 2026, the apex bank announced that these firms are now permitted to repatriate 100% of their proceeds through authorised dealer banks with immediate effect.
This move reverses a February 2024 mandate that forced companies to retain half of their dollar earnings locally for up to 90 days, a measure originally designed to combat acute currency shortages.
This policy shift is a central component of ongoing reforms aimed at liberalising Nigeria’s foreign exchange market and restoring investor confidence.
The CBN is giving energy companies more freedom over their treasury management and capital mobility by getting rid of mandatory holding periods.
While analysts suggest the change may not trigger an immediate surge in dollar supply, it is expected to significantly lower financial risks for the upstream sector and signal a more transparent, market-driven approach to stabilising the naira.
The transition reflects a broader effort by Nigerian authorities to unwind emergency controls introduced during past periods of economic stress.
Alongside this deregulation, the central bank has also raised open-market rates and removed caps on interbank exchange spreads to attract foreign investment.
For international oil majors, the restoration of full repatriation rights marks a critical improvement in operational efficiency, allowing them to deploy their earnings more flexibly in alignment with global market realities.
