The Central Bank of Nigeria (CBN) has directed Authorised Dealer Banks to allow International Oil Companies (IOCs) unrestricted access to 100% of their crude oil export proceeds.
In a circular issued by the Trade and Exchange Department and signed by Director Dr Musa Nakorji, the apex bank directed all Authorised Dealer Banks (ADBs) to allow IOCs to repatriate their full export earnings without the previous phased restrictions.
The policy takes immediate effect and supersedes all earlier guidelines on foreign currency cash pooling arrangements for oil companies.
The CBN put this as part of ongoing reforms to create more liquidity and stability in the Nigerian Foreign Exchange Market.
It referenced two circulars issued in 2024 that had restricted IOCs to repatriating only 50% of proceeds immediately, with the balance held for 90 days before full access.
It added: “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 2024 restrictions were introduced in February amid acute FX scarcity and naira volatility.
The CBN had argued that unlimited immediate repatriation by IOCs — through mechanisms like cash pooling to offshore parent companies — was draining liquidity from the domestic market and putting undue pressure on the naira.
Under the old rules:
Only 50% of export proceeds could be transferred offshore right away.
The remaining 50% was retained in Nigeria for 90 days.
IOCs could, in some cases, sell the retained portion to authorised dealers or use it for local obligations.
The policy aimed to force more dollars to stay within the banking system longer, supporting importers, manufacturers, and overall FX supply.
While it achieved some short-term stability, it created operational bottlenecks for IOCs, who rely on timely access to earnings for joint venture cash calls, debt servicing, dividends, and upstream investments.
Major IOCs including Shell, ExxonMobil, Chevron, TotalEnergies, and Eni will benefit from easier cash flows for joint venture obligations, dividends, and investments.
The policy is expected to boost operational efficiency and investor confidence in Nigeria’s upstream sector.
Administrator and Writer
