KEY POINTS
- CBN now allows international oil companies full and immediate access to 100 percent of their forex export earnings
- New directive removes the 2024 rule that split proceeds and delayed 50 percent for 90 days
- Policy aims to boost forex liquidity, ease operations for oil firms, and strengthen investor confidence
The Central Bank of Nigeria, CBN, has approved full repatriation of export proceeds by international oil companies, granting them unrestricted access to 100 percent of their foreign exchange earnings through authorised dealer banks. The decision marks a significant shift from the phased access framework that has been in place since 2024.
The directive was contained in a circular issued by the CBN’s Trade and Exchange Department and signed by its director, Dr. Musa Nakorji. The circular takes immediate effect and overrides all previous guidelines governing cash pooling arrangements for international oil companies.
Under the previous 2024 framework, authorised dealer banks were allowed to pool 50 percent of repatriated export proceeds on behalf of oil companies. The remaining 50 percent was held for 90 days before companies could access or repatriate the funds. The new policy dismantles that arrangement, allowing oil firms immediate and full access to their export earnings.
In the circular, the central bank stated that international oil companies are now granted unfettered access to their repatriated export proceeds. It added that authorised dealer banks must ensure proper documentation for all transactions and submit monthly reports to the Trade and Exchange Department for monitoring and compliance purposes.
The apex bank explained that the move aligns with current market realities and forms part of broader efforts to improve liquidity in Nigeria’s foreign exchange market. The CBN also indicated that the policy is designed to reduce operational constraints faced by oil companies while promoting smoother foreign exchange transactions.
Restoring Access to Export Earnings Could Ease Pressure in Forex Market
Analysts say restoring full access to export earnings could ease pressure in the forex market by encouraging inflows and reducing delays in repatriation. The decision is also expected to strengthen investor confidence, particularly among multinational oil firms operating in Nigeria, at a time when the country is seeking to attract sustained capital inflows.
The policy may further improve the ease of doing business for international oil companies by eliminating restrictions that previously limited their access to foreign currency earnings. It also signals the central bank’s continued shift toward market-driven reforms in the foreign exchange regime.
Authorised dealer banks have been directed to comply immediately with the new guidelines, while maintaining transparency and regulatory reporting requirements.
