The Central Bank of Nigeria has directed all Authorised Dealer Banks (ADBs) to allow international oil companies full access to their export earnings brought into the country.
This move aims at improving activity in the foreign exchange market according to the CBN.
In a circular issued on Wednesday to all Authorised Dealer Banks, the apex bank said international oil companies can now repatriate 100 per cent of their export proceeds without restriction.
The directive is contained in a circular referenced TED/FEM/FPC/PUB/001/003 and signed by the Director of the Trade and Exchange Department, Musa Nakorji.
According to the circular, the companies are permitted to move all their export earnings through authorised dealer banks, provided the banks ensure proper documentation and submit monthly reports to the Trade and Exchange Department of the CBN.
“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 circular stated.
The bank also made it clear that the new directive overrides previous instructions on cash pooling, asking banks to take note and comply fully. “Please note that this provision supersedes all other circulars issued by the Bank on Cash Pooling,” the circular added.
The latest move marks a shift from earlier measures introduced in 2024, when the CBN allowed authorised dealer banks to pool only half of the export proceeds of international oil companies, while the remaining 50 per cent had to be held for 90 days before it could be repatriated.
That earlier arrangement was part of efforts to manage foreign exchange flows and support liquidity in the market at the time.
With the new directive, the central bank is opening up the system further, giving international oil companies greater flexibility in handling their foreign earnings.
The CBN instructed all Authorised Dealer Banks to comply with the directive immediately, signalling the bank’s intention to align foreign exchange operations with current market conditions and encourage smoother inflows and outflows of foreign currency.
