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The Central Bank of Nigeria has approved the full repatriation of export proceeds by international oil companies, allowing them to access 100 percent of their foreign exchange earnings through authorised dealer banks.
The directive was contained in a circular issued by the bank’s Trade and Exchange Department and published on its website on Wednesday.
In the circular signed by the Director of the department, Dr. Musa Nakorji, the central bank said 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 replaces an earlier policy introduced in 2024 which allowed authorised dealer banks to pool 50 percent of repatriated export proceeds on behalf of oil firms, while the remaining balance was retained locally for 90 days before it could be repatriated.
“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 central bank said the latest adjustment is intended to further liberalise the foreign exchange market in line with prevailing 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 bank said.
Under the new framework, oil companies may repatriate 100 percent of their export earnings through authorised dealer banks, provided appropriate documentation is submitted and monthly reports are filed with the Trade and Exchange Department.
“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.”
CBN added that the new directive overrides all previous circulars relating to the cash pooling arrangement for oil companies and takes immediate effect.
“Please note that this provision supersedes all other circulars issued by the Bank on Cash Pooling,” it stated.
“All Authorised Dealer Banks are to note and be guided accordingly, as this directive takes immediate effect.”
The earlier policy introduced in 2024 limited the ability of international oil companies to remit their full foreign exchange proceeds abroad. Firms were required to repatriate 50 percent of their earnings immediately, while the balance could only be transferred after 90 days.
That framework also required prior approval from the central bank for certain repatriation transactions and mandated detailed financial documentation before funds could be pooled.
The new directive is expected to ease access to foreign exchange earnings for oil companies operating in Nigeria and forms part of broader efforts by the central bank to reform the country’s foreign exchange market.
