By Our Correspondent
National News – The Central Bank of Nigeria has approved a policy allowing International Oil Companies operating in Nigeria to repatriate 100 per cent of their export proceeds, a move aimed at boosting liquidity and improving stability in the country’s foreign exchange market.
The directive was issued on Wednesday in Abuja through a circular from the bank’s Trade and Exchange Department.
The circular, signed by the department’s director, Dr Musa Nakorji, announced that oil companies can now access and remit their entire foreign exchange earnings through authorised dealer banks.
The policy change marks a significant shift from the 2024 framework introduced by the apex bank.
Under the earlier rule, oil firms were permitted to repatriate only 50 per cent of their export proceeds immediately, while the remaining balance had to be retained within Nigeria for 90 days before it could be transferred abroad.
According to the CBN, the latest adjustment was introduced to deepen the foreign exchange market, enhance liquidity, and align with current economic realities.
The bank said the revised rule grants oil companies “unfettered access” to their export proceeds once the funds are repatriated into the country.
Under the new arrangement, authorised dealer banks will handle the repatriation process, ensuring that proper documentation is maintained and submitting monthly reports to the CBN’s Trade and Exchange Department.
The circular also made it clear that the directive overrides all previous circulars related to cash pooling arrangements for International Oil Companies.
Cash pooling refers to a financial structure that allows multinational firms to consolidate funds across accounts before transferring them abroad.
Industry observers say the decision could ease operational constraints for oil companies, many of which had previously raised concerns about delayed access to their foreign exchange earnings.
Analysts also believe the policy could help strengthen investor confidence and improve Nigeria’s attractiveness to foreign investors.
The CBN instructed all authorised dealer banks to comply with the new guidelines immediately, emphasising that the reform forms part of broader efforts to stabilise the foreign exchange market and support economic activity in Nigeria’s oil sector.
