The Central Bank of Nigeria (CBN) has approved the full repatriation of export proceeds by International Oil Companies (IOCs), allowing them to access 100% of their foreign exchange earnings through authorised dealer banks.
The directive was contained in a circular issued by the apex bank’s Trade and Exchange Department and published on Wednesday, signalling a further shift towards foreign exchange market liberalisation.
Signed by the Director of the department, Dr Musa Nakorji, the circular stated that the policy forms part of broader reforms designed to strengthen liquidity and stabilise the Nigerian FX market.
What the circular is saying
According to the bank, the latest decision replaces the 2024 framework, which allowed authorised dealer banks to pool 50% of repatriated export proceeds for oil firms, while the remaining 50% was held for 90 days before it could be repatriated.
The apex bank said, “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 (ADBs) to cash pool 50% of repatriated export proceeds on behalf of International Oil Companies (IOCs) with the remaining 50% retained for 90 days before repatriation.”
The new circular marks a clear departure from that phased structure, granting oil companies unrestricted access to their forex inflows.
It added, “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 IOCs may repatriate 100% of their export proceeds through the ADBs, who shall ensure adequate documentation and submit a monthly report to the Director, Trade & Exchange Department.”
The CBN also clarified that the directive overrides all previous guidelines on cash pooling arrangements for oil companies.
Authorised dealer banks have been directed to comply immediately.
What you should know
The development effectively dismantles earlier restrictions introduced in 2024, which required oil firms to stagger access to their export proceeds and obtain regulatory approvals for certain cash pooling transactions.
Over two years ago, the CBN stopped international oil companies (IOCs) operating in Nigeria from immediately remitting 100% of their forex proceeds to their parent company abroad.
According to the guidelines, then, IOCs would be allowed to repatriate only 50% of their proceeds immediately, while the other 50% will be repatriated 90 days from the day of inflow.
It further issued clarifications on the utilisation of foreign exchange proceeds by IOCs.
The CBN also announced in June 2024 that International Oil Companies (IOCs) could sell 50% balance of their repatriated export proceeds to authorised forex dealers.
By restoring full access to export earnings, the policy is expected to ease operational constraints for IOCs, improve confidence in the FX market, and support broader efforts by the apex bank to deepen liquidity and attract foreign inflows.
