The Central Bank of Nigeria (CBN) has removed its cash pooling requirement for International Oil Companies (IOCs), allowing them unrestricted access to their export earnings in a move aimed at boosting liquidity in the foreign exchange market.
In a statement issued on Wednesday and signed by the Director of the Trade and Exchange Department, Musa Nakorji, the apex bank said the decision forms part of ongoing reforms to stabilise and deepen Nigeria’s foreign exchange market.
Under previous guidelines introduced in 2024, Authorised Dealer Banks were required to pool 50 per cent of repatriated export proceeds on behalf of IOCs, while the remaining 50 per cent was held for 90 days before repatriation.
However, the CBN said the policy has now been scrapped, stating, “To further liberalise and deepen the market in line with current realities, IOCs are hereby granted unfettered access to their repatriated export proceeds.”
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The new directive permits oil companies to repatriate 100 per cent of their export earnings through authorised banks, provided proper documentation is maintained.
It urged the banks to submit monthly reports to the Trade and Exchange Department, noting that the new provision “supersedes all other circulars issued by the Bank on cash pooling” and takes immediate effect.
Authorised Dealer Banks have been directed to comply with the new guidelines accordingly, it stressed.
Pinnacle Daily reports that the Central Bank of Nigeria (CBN), in a circular dated February 14, 2024, barred International Oil Companies (IOCs) from repatriating the full value of their crude oil export proceeds to parent companies offshore.
At the time, it directed the banks to pool 50 per cent of the repatriated funds, or make them available when required by the IOCs, while the remaining 50 per cent could only be repatriated 90 days after the inflow date of the export proceeds.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
