CBN Grants Oil Firms 100% Access to Export Proceeds
By Patience Ikpeme
The Central Bank of Nigeria has removed previous restrictions on how International Oil Companies manage their foreign currency earnings, granting them full immediate access to export proceeds in a significant move to bolster liquidity within the nation’s foreign exchange market.
In a circular issued on Wednesday to all Authorized Dealer Banks, the apex bank announced that these global energy firms are now permitted to repatriate the entirety of their export earnings without the mandatory waiting periods or percentage caps that had defined recent regulatory cycles.
The circular, referenced as TED/FEM/FPC/PUB/001/003 and signed by Dr. Musa Nakorji, the Director of the Trade and Exchange Department, marks a pivot toward a more liberalized market environment. Under the new guidelines, the Central Bank noted that the policy change is designed to align the financial sector with current market realities.
“The International Oil Companies are hereby granted unfettered access to their repatriated export proceeds,” Dr. Nakorji stated in the official communication. “The IOCs may repatriate 100% of their export proceeds through the Authorized Dealer Banks, who shall ensure adequate documentation and submit a monthly report to the Director, Trade & Exchange Department.”
This shift effectively dismantles a 2024 reform package that had sought to manage the flow of dollars leaving the country. Under those prior rules, banks were only permitted to cash pool 50% of repatriated proceeds on behalf of the oil companies. The remaining half was required to be held within the domestic system for at least 90 days before it could be sent abroad.
By removing these barriers, the Central Bank is signaling a commitment to attracting and retaining foreign capital by easing the friction of doing business in Nigeria’s energy sector. The bank made it clear that this new instruction takes precedence over all previous mandates regarding the handling of these specific funds.
“Please note that this provision supersedes all other circulars issued by the Bank on Cash Pooling,” the circular read, adding that all commercial lenders must “note and be guided accordingly, as this directive takes immediate effect.”
